2019 Roth IRA Limits and Roth 401k Limits Increase

Posted by Madison on March 11, 2019

The 2019 Roth IRA limits increased by $500 this year.

The Roth 401k contribution limits also increased by $500. It’s time to adjust your contributions if you haven’t already!

The 401k limits and IRA limits are determined based on inflation, but can only increase in $500 increments.

The 2019 social security wage base increased by $4,200.

Roth IRA and Roth 401k Limits

I highlight the Roth IRA and the Roth 401k because they are my favorite retirement plans; the limits for traditional 401ks and IRAs are the same as the Roth 401k and Roth IRAs.

The 2019 limits will increase for the traditional IRA. Limits for the traditional 401k will increase. In addition, the increased limits also apply to 403b plans and most 457 plans.

2018 & 2019 Contribution Limits

Here are the official contribution limits from the IRS:

Roth 401k Contributions 2018 2019
Maximum $ 18,500 $ 19,000
Catch-up 50 and over $ 6,000 $ 6,000
Roth IRA Contributions 2018 2019
Maximum $ 5,500 $ 6,000
Catch-up 50 and over $ 1,000 $ 1,000

You can make your 2019 contributions as early as January 1, 2019 for the whole year. If you contribute 2019 Roth IRA money between January 1 and April 15, be sure to designate the calendar year 2019 if you have already contributed the maximum for 2018.

Since the 2019 limits will increase for the Roth IRA, if you use automatic investments, you should adjust your contributions to maximize the limit increase. You should contact your HR department to make changes to your Roth 401k deferral rate for 2019 if you want to take advantage of the increase.

To maximize your IRA investments, make sure you aren’t paying extra fees in your IRA. You can transfer your IRA to another broker to avoid annual fees. We use Vanguard for our IRAs.

Roth IRA Income Limits

The income limits for Roth contributions in 2019 went up slightly. You may contribute the full amount to your Roth IRA if your 2019 modified adjusted gross income is below $122,000 for singles ($193,000 for married). You may make partial contributions until your income hits $137,000 ($203,000 for married).

If your income is above that, you cannot contribute to a Roth IRA. If you are interested, there is a workaround called the Backdoor Roth IRA if your income is above the limits.

2018 Contribution Deadlines

The deadline for 2018 IRA contributions is April 15, 2019, the same as the tax deadline.

401k contribution deadlines are based on the calendar year. 2018 401k contributions were due at the end of the year.

More Helpful Roth Topics

What Should Your Financial Pie Chart Look Like?

Posted by Jill on February 27, 2019

How to build a financial pie chart. Have you made a financial pie chart yet? I’m a numbers girl. Always have been, and always will be. I see things in numbers and fractions and percentages. Budgeting and tracking my spending comes easy for me because of that. But if you’re a visual person, you might […]

Continue reading…

How Much Money Do You Have to Make to File Taxes?

Posted by Madison on February 20, 2019

How much money do you have to make to file taxes? What is the minimum income to file taxes? Let’s take a look at the requirements for the minimum income to file taxes in 2018 (and due in 2019). 2018 Minimum Income Requirements The IRS released the minimum income to file taxes in 2018. For […]

Continue reading…

Citi Double Cash 2% Cash Back Credit Card

Posted by Madison on May 25, 2018

I mentioned the Citi Double Cash card in our strategy for earning cash back on our mortgage payments Paying Bills with a Credit Card: No Fee via Plastiq and Masterpass. Citi Double Cash 2% Cash Back Credit Card The Citi Double Cash card is essentially a 2% cash back card. 2% cash back cards are […]

Continue reading…

Plastiq is offering free bill payments when you use your Masterpass account! We’ve covered how to use Plastiq to Pay Mortgage or Rent with a Credit Cards before. Typically, they charge a fee to use your credit card. Free Plastiq Bill Payments Right now, Plastiq payments of $500 or less are fee free! The current […]

Continue reading…

ABOC Platinum Rewards $150 Sign Up Bonus

Posted by Madison on May 11, 2018

I’m always on the lookout for new credit card sign up bonuses! The ABOC Platinum Rewards card caught my eye this week! The card has an easy $150 sign up bonus with a low spending requirement. These criteria are what makes up our list of Most Popular Credit Card Bonuses Last Year, so I’m guessing […]

Continue reading…

5 of the Biggest Scams You Need to Know About

Posted by Don on May 9, 2018

Every day it seems there are new scams trying to separate hard working people from their money. Sadly, these scams are getting more and more sophisticated and as a result, easier and easier to fall for. It is important for you to be aware of the biggest scams you need to know about. By staying […]

Continue reading…

5 Things That Cost More Than They Are Worth

Posted by Don on May 2, 2018

When you spend your money, you want to get a good value for what you pay for. Your goal should never be to put out money for things that cost more than they are worth. If you subscribe to spending this way, you will never get ahead financially. Unfortunately, there are some things where the […]

Continue reading…

Project Fi $20 Bonus + $249 Credit on 2 Moto X4 Phones

Posted by Madison on April 26, 2018

Project Fi offers a $20 sign up bonus. Right now, they are also offering a $249 service credit when you buy 2 Moto X4 phones. It’s the equivalent of getting the phones for about $130 each, a great deal! I mentioned we were switching our cell phone service to Project Fi when we detoured for […]

Continue reading…

Earth Day is coming up and I’ve been waiting to share this offer! Arcadia Power is offering a $5 bonus when you sign up for their free clean wind energy program. The enrollment is quick and easy! Arcadia Power Once you enroll in Arcadia Power, you’ll get 50% of your energy from clean wind energy […]

Continue reading…