The tax law places dollar limits on the contributions to retirement plans and Individual Retirement Accounts (IRAs) and the amount of benefits under a pension plan. Internal Revenue Code (IRC) Section 415 requires the limits to be adjusted annually for cost-of-living increases.
| 2019 | 2018 | 2017 | |
| IRAs | |||
| IRA Contribution Limit | $6,000 | $5,500 | $5,500 |
| IRA Catch-Up Contributions (Age 50 and over) | $1,000 | $1,000 | $1,000 |
| IRA AGI Deduction Phase-out Starting at | |||
| Joint Return | $103000 | $101,000 | $99,000 |
| Single or Head of Household | $64,000 | $63,000 | $62,000 |
| SEP | |||
| SEP Minimum Compensation | $600 | $600 | $600 |
| SEP Maximum Contribution | $56,000 | $55,000 | $54,000 |
| SEP Maximum Compensation | $280,000 | $275,000 | $270,000 |
| SIMPLE Plans | |||
| SIMPLE Maximum Contributions | $13,000 | $12,500 | $12,500 |
| Catch-up Contributions (Age 50 and over) | $3,000 | $3,000 | $3,000 |
| 401(k), 403(b), Profit-Sharing Plans, etc. | |||
| Annual Compensation | $280,000 | $275,000 | $270,000 |
| Elective Deferrals | $19,000 | $18,500 | $18,000 |
| Catch-up Contributions (Age 50 and over) | $6,000 | $6,000 | $6,000 |
| Defined Contribution Limits | $56,000 | $55,000 | $54,000 |
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Source: The Internal Revenue Service, “COLA Increases for Dollar Limitations on Benefits and Contributions”
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