Each year the Internal Revenue Service and the Social Security Administration publish cost-of-living adjustments, retirement plan contribution limits, and other tax-related items. Here are a few notable updates:

Retirement Savings
Increased Limits
In 2019, you can contribute up to $19,000 in your 401(k) and other employer plans and up to $6,000 in a Roth or Traditional IRA, each a respective $500 increase from 2018.

Catch-Up Contributions
As the name implies Catch-Up contributions were initially created to help those (age 50 and older) who had not contributed retirement savings earlier in their careers to effectively ‘catch-up’—but they are also available for those who have saved diligently to take advantage. You can contribute an additional $6,000 in your 401(k) and other employer plans and $1,000 in a Roth or Traditional IRA (amounts unchanged from last year). As long as you are 50 years old by December 31, 2019, you can make the full catch-up contribution for the year.

Roth IRA Funding Eligibility and Deadlines
If you’re considering funding an IRA for 2018, there’s still time. Contributions for the 2018 tax year are eligible until the tax filing deadline on April 15, 2019, though vary by tax filing status. If you are single, you must have a modified adjusted gross income (MAGI) under $135,000 with reduced contributions starting at $120,000. If you are married, filing jointly, your MAGI must be less than $199,000 with reductions beginning at $189,000.

Be aware the 2019 tax year will institute higher income limits; a single taxpayer’s MAGI must be under $137,000 with reduced contributions starting at $122,000. For married couples, the MAGI limit is $203,000 with reductions starting at $193,000.

Health Savings Account
Health Savings Accounts (HSAs) are tax-exempt accounts that enable you to save money for eligible medical expenses. You must be enrolled in an HSA-qualified high deductible health plan to have an HSA. In 2019, you can contribute up to $3,500 as an individual and $7,000 as a family to your HSA, a slightly higher contribution than this past year. Persons over age 55 are entitled to an additional annual catch-up contribution of $1,000 in 2019, unchanged from previous years. All HSA contributions may be made up to the tax filing deadline.

Social Security
Social Security recipients will receive a 2.8% cost-of-living adjustment (COLA) in 2019, an additional 0.8% to the COLA increase in 2018.

Monthly premiums for Medicare Part B will slightly increase from $134 to $135.50 in 2019. Seniors with modified adjusted gross income over $85,000 (single filers) or $170,000 (joint filers) will pay a higher premium of anywhere from $189.60 up to $460.50.

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