Retirement account limits up for 2019
Washington, D.C. — The contribution limit for employees who participate in 401(k), 403(b), most 457 plans and the federal government’s Thrift Savings Plan will increase in 2019 to $19,000, the Internal Revenue Service said. The limit on annual contributions to an IRA, which last increased in 2013, rose from $5,500 to $6,000. The additional catch-up contribution limit for individuals who are 50 and older remains $1,000.
The income ranges for determining eligibility to make deductible contributions to traditional IRAS, to contribute to Roth IRAS, and to claim the saver’s credit all increased for 2019.
If during the year either the taxpayer or their spouse was covered by a retirement plan at work, the deduction for contributions to a traditional IRA may be reduced, or phased out, until it is eliminated, depending on filing status and income.
Technical guidance is available in Notice 2018-83.
IRS advisory committees getting an overhaul
Washington, D.C. — The Internal Revenue Service Advisory Committee’s role will expand in 2019 to have a wider portfolio and incorporate two other advisory groups.
The expanded IRSAC will include areas now covered by the Information Reporting Program Advisory Committee and the Advisory Committee on Tax Exempt and Government Entities, or ACT.
The move comes after IRSAC encouraged the IRS to explore how to streamline groups organized under the Federal Advisory Committee Act. The new IRSAC will focus on four subcommittees tracking the four IRS operating divisions: Wage and Investment, Small Business and Self-employed, Tax Exempt and Government Entities, and Large Business and International.