240-428-1622 | info@shermanwealth.com

The 2019 Contribution Limits Are Here!

Be on the same team! Talking about and managing finances together
September 20, 2018
Show all

The 2019 Contribution Limits Are Here!

Great news for savers! The IRS announced today that taxpayers will be able to contribute $6,000 to their traditional individual retirement accounts in 2019, up from the $5,500 level in place since 2013. Participants in 401(k) plans will be able to set aside up to $19,000 before taxes next year, up from $18,500. This is a huge positive and should be taken advantage of and we will use these figures to start planning for your 2019 budget and retirement goals.

 

  • The salary deferral limit for 401(k), 403(b) and 457 plans increases to $19,000.
  • The SIMPLE deferral limit increases to $13,000.
  • The annual additions limit for defined contribution plans increases to $56,000.
  • The annual additions limit for defined benefit plans increases to $225,000.
  • The annual compensation limit increases to $280,000.
  • The Social Security Wage Base increases to $132,900.
  • The compensation limit for determining who is a highly compensated employee increased for the first time in five years, and is now $125,000.

For the full list of changes here is the IRS announcement