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Jan 29, 2019

Each year, the IRS publishes an announcement with the cost-of-living adjustments (COLAs) for retirement plans and IRAs that will apply in the coming year.



For IRAs, the COLAs affect the annual contribution limit and the income limits that determine whether taxpayers are eligible to take a deduction for their traditional IRA contributions or to make a Roth IRA contribution. Based on the recently released COLAs, you may be able to contribute more to your self-directed IRA for 2019.


Traditional and Roth IRA Contribution Limit

All of your traditional and Roth IRAs are combined when calculating the maximum annual contribution limit.

2019 Cola Limits


Income Limits for Deducting Traditional IRA Contributions

*May be limited further if your income exceeds the Roth eligibility limits

If you have earned income and are younger than 70½, you are eligible to contribute to a traditional IRA. If you participate in a retirement plan at work, however, you may not be able to take a tax deduction for your contribution, depending on your income. If you (and your spouse if applicable) have income within the range noted in the chart below, based on your tax-filing status, you may take a partial deduction for your contribution. If your income exceeds the top amount in the range, you may not take a deduction.


When You Participate in a Retirement Plan at Work

Tax Filing Status


When You Don't Participate in a Retirement Plan, But Your Spouse Does

COLA Tax Filing Status


Income Limits for Eligibility to Contribute to a Roth IRA

If you have earned income within or below the income ranges noted in the chart below, you may contribute to a Roth IRA for the year. If your income exceeds the maximum limit for your tax-filing status, you may not contribute to a Roth IRA for the year. Unlike a traditional IRA, there is no 70½ age limit for contribution eligibility and Roth IRA contributions are never tax-deductible. 


Tax Filing Status COLA


Employer-Based Retirement Plans

The COLAs also affect contributions to employer-based IRA plans and owner-only 401(k) plans, sometimes referred to as Individual(k) plans or Solo 401(k) plans.


COLA Limits 2019


To find out more about contributing to a self-directed IRA, SEP, SIMPLE or Individual 401(k) plan for 2019

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