Save More for Retirement in 2019
The Internal Revenue Service (IRS) released new contribution limits for retirement accounts in 2019. If you are still working, now you have one more reason to save more for your retirement. Here are a few highlights:
For 401(k) plans, as well as 403(b) plans, most 457 plans and the federal government’s Thrift Savings Plan, the limit will be $19,000 annually. Employees 50 and older remains can put as much as $25,000 in their 401(k) plan.
The contribution limit for individual retirement accounts (traditional IRA and Roth IRA) will be $6,000 in 2019. Workers 50 and older can save as much as $7,000 in an IRA. Please keep in mind contributions to IRAs are subject to income phaseout ranges.
The income limit for the Saver’s Credit for low- and moderate-income workers has also increased. For married couples filing jointly, the limit is now $64,000; for heads of household, it’s $48,000; and for singles and married individuals filing separately, it’s $32,000. If you meet the income threshold, this is something to take advantage of because the Federal government is helping you save for retirement while cutting back your income tax.
You can find out more changes here. Please let us know if you are interested in setting up a meeting to discuss how you can save and invest more for a secured retirement.