2019 Contribution Limits

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This year was a good year for Roth loving folks like us.

The employee elective deferral is up another $500, which means you can call your payroll department to increase your deferral for 2019.

For those who are also fortunate to have Roth 457 plans, you can also increase your Roth deferred compensation by $500.

And, for the first time since 2015, the IRA contribution limit has been increased! Now, you can save $500 more per year per person.

For a lucky few, this might mean $1,500 more dollars of Roth savings each year.

If you are stretched thin and are thinking, “I can’t afford to save more!” You might appreciate reading our articles “Fund Your Roth IRA Even When You Can’t Afford It ” and “How to Convert Taxable Savings Into Your Roth IRA.”

Tax Year 2019

Account Type Requirements Contribution Limit Change from 2018
Traditional or Roth IRA Contribution

(subject to phaseouts, limited by wages)

Age 49 and under $6,000 +$500 to base contribution limit

catch-up remains at $1,000

Age 50 and over $7,000
Employee Elective Deferral
401(k) or 403(b) plans
Age 49 and under $19,000 +$500 to base contribution limit

catch-up remains at $6,000

Age 50 and over $25,000
Employee Deferred Compensation
457(b) plans
Age 49 and under $19,000 +$500 to base contribution limit

catch-up remains at $6,000

Age 50 and over $25,000
Employee Elective Deferral
SIMPLE 401(k) or IRA Plan
(with further limitations)
Age 49 and under $13,000 +$500 to base contribution limit

catch-up remains at $3,000

Age 50 and over $16,000
SEP IRA Employer Contribution

401(k), 403(b), or 457 plans Employer Contribution

The smaller of: $56,000

or 25% of compensation

+$1,000 to base contribution limit
Health Savings Account (HSA) Contribution Single Plan Age 54 and under $3,500 +$50 to base single contribution limit

+$100 to base family contribution limit

catch-up remains at $1,000

Age 55 and over $4,500
Family Plan Age 54 and under $7,000
Age 55 and over $8,000

 

You can find the current contribution limits here: Account Contribution Limits
and
the IRS page on the same topic here: Retirement Topics – Contributions

Featured Image by Melissa Walker Horn on Unsplash

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Megan Russell has worked with Marotta Wealth Management since 2005. She loves to find ways to make the complexities of financial planning accessible to everyone. Her most popular post: The Complete Guide to Your Washing Machine