IRS Lets Workers Put More Into 401(k) Plans
The Internal Revenue Service is letting workers put more into their 401(k) and other retirement plans for 2019.

The tax man is giving retirement planners a break -- but just a little one. The Internal Revenue Service is letting workers put a bit more into their 401(k) and other retirement plans next year, the IRS announced Thursday, Nov. 1.

Contribution limits have been upped to $19,000 from $18,500 for those in 401(k), 403(b), most 457 plans, and the government's Thrift Savings Plan, said the IRS.

Yearly IRA limits -- which last increased in 2013 -- will also get bumped up by $500 to $6,000. The so-called "catch-up contribution" for people 50 and older has not budged, however, and still remains at a $1,000 limit.

The IRS also noted some changes to deductions including:

For singles: Taxpayers filing as single and covered by their employers' retirement plan have a phase-out range of $1,000 more at $64,000 to $74,000.

For couples: For those filing jointly as married couples with one partner contributing to an IRA who is also covered by an employer retirement plan, the phase-out range is now $103,000 to $123,000 -- up $2,000. If the person paying into the IRA is not covered by a their company's retirement plan but is married to a spouse who is, the deduction is phased out if the couple's income is between $193,000 and $203,000 -- up by $4,000.

For married but separate: A married person who is filing a separate return and who is covered by a job's retirement plan, the phase-out range remains capped at $10,000.

In addition, the income phase-out range for those paying into a Roth IRA is $122,000 to $137,000 for singles and heads of households, up $2,000. For married couples filing jointly, the range is $193,000 to $203,000, up $4,000. 

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