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RETIREMENT

2019 Retirement Saving Contribution Limits

With 2019 quickly approaching, the IRS has released its cost of living adjustments affecting the dollar limitations for retirement-related items in 2019. With 75% of Americans relying solely on their work sponsored retirement plans for their retirement income, it is important to save as much money as possible for retirement.

2019 401(k) and 403(b) Contributions Limits
  • Employees participating in their company sponsored 401(k) or 403(b) plan have a new contribution limit of $19,000, which is up from $18,500 in 2018.
  • The contribution limit for participants over age 50 is $25,000, which includes the unchanged $6,000 catch-up limit.
  • The highly compensated employee (HCE) threshold will increase by $5,000 to $125,000.
2019 Simple 401(k) and Simple IRA Contribution Limits
  • Employees participating in their company sponsored Simple 401(k) or Simple IRA have a new contribution limit of $13,000, which is up from $12,500 in 2018.
  • The contribution limit for participants over age 50 is $16,000, which includes the unchanged $3,000 catch-up limit.
2019 IRA and Roth Changes

The income ranges for determining eligibility to make deductible contributions to traditional Individual Retirement Arrangements (IRAs) and to contribute to Roth IRAs increased for 2019 as well.
  • Traditional and Roth IRA contribution limits will increase to $6,000, which is up $500 from $5,500 in 2018.
  • The contribution limit for participants over age 50 is $7,000, which includes the unchanged $1,000 catch-up limit.
Deduction Limitations

Remember, the IRA contribution limit and the 401(k)/403(b) contribution limit are separate. You can contribute to both a 401(k)/403(b) and a traditional or Roth IRA, but it does come with tax deduction limitations.

See this chart for the full breakdown of contribution limits and deduction limits.

How We Can Help

Planning for an enjoyable retirement starts with maximizing the amount you are able to contribute to your retirement plan. That extra $500 you are able to contribute to your 401(k) a year comes down to about $20 per paycheck and can have a big impact down the road. To see just how much of a difference that extra money can make, check out our post The $300,000 Difference Between Starting to Save at 25, 35, and 45.

Have questions about your financial well-being heading into retirement? Let us put together a FREE financial plan for you. Contact us with questions at 410.685.9685.

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