Accounting Today - - Taxpractice -

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.

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