Retirement Plans

Income Planning and IRMAA in Retirement

Angela Muckler, Relationship Manager, 8/27/2020 Medicare is an area that practically every American will encounter when planning for retirement. It sits at the intersection of health and wealth in your financial life plan, and so often surfaces across a range of long-term planning conversations. Plus, Medicare and its associated costs can be a confusing topic,…

Relief for Retirement Account Owners

The BAM ALLIANCE, 8/4/2020 On March 27, 2020, the Coronavirus Aid, Relief and Economic Security (CARES) Act was signed into law. Since then, the U.S. Treasury Department has issued guidance to clarify and, in some cases, expand the provisions of the CARES Act dealing with retirement accounts and the relief offered to retirement account owners…

Retirement Plans – IRS Indexed Limits for 2019

The IRS indexed dollar limits to qualified retirement plans for 2019 are provided in the table below. This update is provided for informational purposes and not intended as legal advice. Return to current year.

Item IRC Reference 2019 Limit 2018 Limit
401(k) and 403(b) Employee Limit1 402(g)(f) $19,000 $18,500
457 Employee Deferral Limit 57(e)(15) $19,000 $18,500
Catch-up Contribution2 414(v)(2)(B)(i) $6,000 $6,000
Defined Contribution Dollar Limit 415(c)(f)(A) $56,000 $55,000
Defined Benefit Dollar Limit 415(b)(1)(A) $225,000 $220,000
Compensation Limit for calculating contributions3 401(a)(17); 404(l) $280,000 $275,000
Highly Compensated Employee Income Limit4 414(q)(1)(B) $125,000 $120,000
Key Employee Officer 416(i)(1)(A)(i) $180,000 $175,000
Social Security Taxable Wage Base $132,900 $128,400

Individual Accounts – IRS Indexed Limits for 2019

Item IRC Reference 2019 Limit 2018 Limit
Limit on employee contributions to 401(k) 403(b), or 457 plan $19,000 $18,500
Limit on age 50+ catchup contributions to 401(k) 403(b), or 457 plan $6,000 $6,000
Traditional & Roth IRA contribution limits $6,000 $5,500
Traditional and Roth IRA age 50+ catchup contribution limit $1,000 $1,000

Individual Accounts – IRS Indexed Limits for 2019

Item IRC Reference 2019 Limit 2018 Limit
Deductible IRA income limit, active participant in workplace retirement plan, single $64,000
$74,000
$63,000
$73,000 (Phase Out)
Deductible IRA income limit, active participant
in workplace retirement plan, married filing jointly
$103,000
$123,000
$101,000
$121,000 (Phase Out)
Deductible IRA income limit, spouse is active participant in workplace retirement plan $193,000
$203,000
$189,000
$199,000 (Phase Out)
Roth IRA income limit, single 408A(c)(3)(A) $122,000
$137,000
$120,000
$135,000 (Phase Out)
Roth IRA income limit, married filing jointly 408A(c)(3)(A) $193,000
$203,000
$189,000
$199,000 (Phase Out)
SIMPLE 401(k) or SIMPLE IRA contributions limit $13,000 $12,500
SIMPLE 401(k) or SIMPLE IRA age 50+ catchup contributions limit $3,000 $3,000

1 Employee deferrals to all 401(k) and 403(b) plans must be aggregated for purposes of this limit. A lower limit applies to SIMPLE plans.
2 Available to employees age 50 or older during the calendar year.  A lower limit applies to SIMPLE plans.
3 All compensation from a single employer must be aggregated for purposes of this limit.
4 For the 2019 plan year, an employee who earns more than $125,000 in 2018 is an HCE