Here’s a great New Year’s Resolution for 2019…Save more in your retirement accounts!
The IRS is on board! They recently announced new contribution limits for 401(k) participants and IRA account holders. Here’s how much you can sock away toward retirement in 2019:
- In 2019, you will be able to save up to $19,000 in your 401(k) or 403(b), up from $18,500 in 2018.
- The limit for individual retirement accounts will be $6,000 – up from $5,500 this year
- Small business owners – Solo 401(k) and SEP IRA limits will increase $1,000 to $56,000 in 2019
- The catch-up contribution limits for those 50 and over remain unchanged at $1,000 for IRA’s and $6,000 employee plans.
In addition, the income ranges that determine eligibility for…
deductible contributions to traditional IRA’s
…have all increased as follows:
- Single Taxpayer covered by a workplace retirement plan – $64k-$74k
- Married Filing jointly, where contributor is covered by a workplace retirement plan – phase out range for a deductible contribution up to $103k-$123k
- IRA contributor not covered by a plan at work, but is married to someone who is covered – range = $193k-203k
- Taxpayers making Roth contributions have a new phase out range of $122k-$137k for singles and heads of household
- Married couples filing jointly – Roth contributions phase out range – $193k-$203k
So here’s to 2019! The year you accomplished your savings resolution, your tax bill got lower and your retirement savings got higher!
As always, we are here to help! Contact us for help navigating the numbers or setting up a plan.