Is your 2019 new year’s resolution saving money? If so, the IRS just made it easy to save even more in your retirement account. After many years without adjustments, the Treasury Department has announced inflation-adjusted figures for retirement account savings for 2019.

The new contribution limits for those using pretax funds participating in 401(k) plans will be $19,000 in 2019, up from the previous $18,500.

That limit will also apply to 403(b), Thrift Savings and most 457 plans.

Additionally, the limit on annual contributions to an individual retirement account (IRA) increases from $5,500 to $6,000. Catch-up contribution limits if you’re 50 or older in 2019 remain unchanged at $6,000 for workplace plans and $1,000 for IRAs.

Taxpayers can deduct contributions to a traditional IRA if they meet particular requirements. But, if during the year either the taxpayer or their spouse was covered by a retirement plan at work, the deduction may be reduced, or phased out, until it is eliminated, depending on filing status and income. If a retirement plan at their place of employment covers neither the taxpayer nor their spouse, the phase-out amounts of the deduction do not apply.

Here are the phase-out ranges for 2019:

  • For single taxpayers covered by a workplace retirement plan, the phase-out range is $64,000 to $74,000, up from $63,000 to $73,000.
  • For married couples filing jointly, where a work retirement plan covers one spouse making the IRA contribution, the phase-out range is $103,000 to $123,000, up from the previous $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, up from the previous $189,000 and $199,000.
  • For a married individual filing a separate return who is covered by a workplace retirement plan, the phase-out range is not subject to an annual cost-of-living adjustment and remains $0 to $10,000.

These limits on annual contributions may seem unreachable, but during 2017, 13% of people with workplace retirement plans saved the then-statutory maximum of $18,000/$24,000, according to Vanguard’s How America Saves. In plans offering catch-up contributions,14% of those age 50 or older took advantage of the extra savings opportunity.

Saving for retirement can make a big impact on your financial future. Talk to your Missouri accountant if you have any questions about your retirement plan or taxes. Schultz, Wood, and Rapp P.C., your trusted CPA firm in Missouri, can provide the advice and counsel you need to prepare for your future.