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2019 TSP Contribution Limits

limits

There is good news if you are a federal employee saving for retirement. The Internal Revenue Service has announced next year’s contribution limits for the Thrift Savings Plan and for Individual Retirement Accounts. You will be able to contribute more to each.

2019 TSP Contribution Limits

The annual contribution limit in 2019 will now be $19,000 for TSP. That’s a 2.7% increase from 2018. The limit also applies to 401k, 403b, and most 457 plans. The catch-up contribution limit for employees over 50 participating in the TSP remains $6,000. This also applies to 401k, 403b, and most 457 plans.

IRA Contribution Limits

In 2019, the limit will increase 9%, from $5,500 to $6,000. The limit has not increased since 2013. The additional catch-up limit on IRA’s for those over 50 Is not subject to an annual cost of living adjustment and remains $1,000.

IRA Income Limits

Income ranges for determining eligibility to make deductible contributions to Traditional and Roth IRA’s all increased for 2019.

Traditional IRA

You can deduct certain contributions to a Traditional IRA if you meet specific requirements. If during the year either you (the taxpayer) or your spouse was covered by a retirement plan at work, your deduction may be reduced or phased out, until its eliminated, depending on filing status and income. Deductions do not apply if neither of you is covered by your plan at work.

The 2019 phase-outs are:
  • For single taxpayers covered by a workforce retirement plan, the phase-out range is $64,000-$74,000, up from $63,000-$73,000.
  • For married couples filing jointly where the IRA contribution-making spouse is covered by a workforce retirement plan, the phase-out range is $103,000-$123,000, up from $101,000-$121,000.
  • If an IRA contributor is not covered by a workforce retirement plan but is married to someone who is, the deduction is phased out if the couples’ income I between $193,000-$203,000, up from $189,000-$199,000.
  • For a married individual filing separately and covered by a workforce retirement plan, the phase-out range is not subject to an annual COLA and remains $0-$10,000.

Roth IRA

The income phase-out range for taxpayers making Roth IRA contributions is $122,000-$137,000 for singles and heads of households, up from $120,000-$135,000.

For married couples filing jointly, the income phase-out range is $193,000-$203,000, up from $189,000-$199,000.

Finally, the phase-out range for a married individual filing a separate return who contributes to a Roth IRA is not subject to an annual COLA and remains $0-$10,000.

Saver’s Credit

The income limit for the Saver’s Credit (the Retirement Savings Contributions Credit) for low- and moderate-income workers is $64,000 for married couples filing jointly, up from $63,000; $48,000 for heads of households, up from $47,250; and $32,000 for singles and married individuals filing separately, up from $31,500.

To read the full IRS document, click here.