IRS Announces New Retirement Plan Contribution LimitsSubmitted 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:
|Catch-up contribution (50+ years)||$1,000||$1,000|
|Catch-up contribution (50+ years)||$6,000||$6,000|
|Health Savings Account (HSA)||$3,500||$7,000|
|Catch-up contribution (55+ years)||$1,000||$1,000|
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