IRS Announces New Retirement Plan Contribution Limits
Submitted by LWM | Linden Wealth Management LLC on November 5th, 2018
Good news for savers, the IRS announced new retirement plan contribution limits for 2019 to go along with those previously announced for health savings accounts (HSA). The larger contribution limits mean lower taxes, potentially higher after-tax investment returns and greater retirement income.
Depending on your income level, you could contribute, through a combination of a 401-k, IRA and HSA, as much as $40,000 annually. If you're self-employed, as much as $64,000 through a SEP IRA and HSA.
The tax savings can really add up. The Government understands the challenges future retirees face, which includes rising healthcare costs, and through the tax-code is incentivizing us to save as much as possible:
| 2019 | 2018 | |
| Traditional IRA | $6,000 | $5,500 |
| Roth IRA | $6,000 | $5,500 |
| Catch-up contribution (50+ years) | $1,000 | $1,000 |
| SEP IRA | $56,000 | $55,000 |
| 401-k | $19,000 | $18,500 |
| Catch-up contribution (50+ years) | $6,000 | $6,000 |
| Single | Family | |
| Health Savings Account (HSA) | $3,500 | $7,000 |
| Catch-up contribution (55+ years) | $1,000 | $1,000 |
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*This content is developed from sources believed to be providing accurate information. The information provided is not written or intended as tax or legal advice and may not be relied on for purposes of avoiding any Federal tax penalties. Individuals are encouraged to seek advice from their own tax or legal counsel. Individuals involved in the estate planning process should work with an estate planning team, including their own personal legal or tax counsel. Neither the information presented nor any opinion expressed constitutes a representation by us of a specific investment or the purchase or sale of any securities. Asset allocation and diversification do not ensure a profit or protect against loss in declining market
