You May Be Able to Save More for Retirement in 2019

Retirement plan contribution limits are indexed for inflation and many have gone up for 2019, so this gives you opportunities to increase your retirement savings:

  • Elective deferrals to 401(k), 403(b), 457(b)(2) and 457(c)(1) plans: $19,000 (up from $18,500)
  • Defined contribution plans contributions: $56,000 (up from $55,000)
  • SIMPLEs contributions: $13,000 (up from $12,500)
  • IRAs contributions: $6,000 (up from $5,500)

One exception is catch-up contributions for taxpayers age 50 and older. These remain at the same levels, so they are the same for 2018:

  • Catch-up contributions to 401(k), 403(b), 457(b)(2) and 457(c)(1) plans: $6,000
  • SIMPLEs catch-up contributions: $3,000
  • IRAs catch-up contributions: $1,000

Additional factors can affect how much you’re allowed to contribute and how much your employer can contribute on your behalf. For example, income-based limits can reduce and or possibly eliminate your ability to make Roth IRA contributions or to make deductible traditional IRA contributions.

Contact us to make the most of your tax-advantaged retirement-saving opportunities in 2019.

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