Menu

(866) 818-4472

Open Account Client Login

PENSCO Blog

PENSCO Blog

Fresh alternative asset insights and the latest news on real estate and private equity investing.

2019 IRA Contribution Limits Are Increasing

  |  By Taylor Close

2019 IRA contribution limits are set to increase for the first time in six years, with the IRS saying it will raise the limit on annual IRA contributions to $6,000 next year from $5,500.

The IRS adjusts IRA contribution limits and income phase-out ranges once a year based on cost of living adjustments. Inflation-adjusted figures mean annual IRA contribution limits will finally rise next year from the $5,500 level they’ve been sitting at since 2013.

2019 IRA contribution limits include an additional $1,000 catch-up contribution for investors who are aged 50 and older. This catch-up contribution level is not subject to an annual cost-of-living adjustment and remains flat from 2018.

While almost anyone can make contributions to an IRA, those contributions are not always tax deductible. IRA deductions may be reduced, phased out or completely eliminated based on your filing status and income.

Here are the 2019 income phase-out ranges for investors who own a traditional IRA:

  • For single taxpayers who are covered by a workplace retirement plan, the 2019 phase-out range is $64,000 to $74,000. That is up from $63,000 to $73,000 in 2018.
  • For married couples who file jointly—where the spouse making the IRA contribution is covered by a workplace retirement plan—the phase-out range is $103,000 to $123,000. That is up from 2018’s level of $101,000 to $121,000.
  • For an IRA contributor who is not covered by a workplace retirement plan and is married to someone who is covered, the deduction is phased out if the couple’s income is between $193,000 and $203,000. That has risen from 2018’s range of $189,000 to $199,000.
  • The phase-out range for a married individual filing a separate return who is covered by a workplace retirement plan remains $0 to $10,000.

Here are the 2019 income phase-out ranges for investors who own a Roth IRA:

  • The income phase-out range for singles and heads of household is $122,000 to $137,000. That is up from $120,000 to $135,000 in 2018.
  • For married couples filing jointly, the income phase-out range will be $193,000 to $203,000, which is up from $189,000 to $199,000 in 2018.
  • The Roth IRA contribution phase-out range for a married individual filing a separate return remains $0 to $10,000.

These 2019 IRA contribution limit increases mean it is easier for investors to build their retirement savings over time. Holdings in a traditional IRA can compound year-after-year on a tax-deferred basis and can grow that way until required minimum distributions must start when an account holder turns 70½. This compounding can potentially help a small retirement nest egg become a large one.

To get a full list of contribution limits, you can visit PENSCO’s IRA contribution limits and deadlines page.

This Blog does not provide investment, tax, or legal advice nor does it evaluate, recommend or endorse any advisory firm or investment vehicle. Investments are not FDIC insured and are subject to risk, including the loss of principal.

PENSCO Trust Company performs the duties of an independent custodian of assets for self-directed individual and business retirement accounts and does not provide investment advice, sell investments or offer any tax or legal advice. Clients or potential clients are advised to perform their own due diligence in choosing any investment opportunity as well as selecting any professional to assist them with an investment opportunity. Alternative investments are not FDIC insured and are subject to risk, including loss of principal. PENSCO is indirectly affiliated with a registered broker dealer and with a licensed small business investment company through Opus Bank (“Opus Affiliates”). Other than the Opus Affiliates, PENSCO is not affiliated with any financial professional, investment, investment sponsor, or investment, tax or legal advisor.