2019 Means More Savings in Retirement Accounts

Recently the Treasury Department announced inflation-adjusted figures for retirement account savings for 2019, and its good news for retirement savers.  Traditional and Roth IRAs see their first contribution limit increase in 5 years!  Other retirement accounts see increase as well.

An IRA contribution refers to money you deposit into an individual retirement arrangement or IRA. IRAs are designed to help you build up a retirement savings by allowing you to save and invest money on a tax-advantaged basis.

If you save with both a 401k and a traditional IRA, you may also face some limits on your ability to deduct your contributions depending on your income. Contributions to a Roth are never deductible.  Both workplace and individual retirement accounts can be crucial in building your retirement savings.

Traditional or Roth

2018 – $5,500 for under 50 and $6,500 for 50+

2019 – $6,000 for under 50 and $7,000 for 50+

SEP

2018 – $55,000

2019 – $56,000

SIMPLE

2018 – $12,500

2019 – $13,000

(Catch-up contribution for 50+ = $3,000)

401(K)

2018 – Overall $55,000

Employee portion – $18,500

50+ – $24,500

2019 – Overall $56,000

Employee portion – $19,000

50+ – $25,000

Check with your tax professional to determine the correct contribution amount for you.  You can read more about making a contribution to your retirement account here – https://udirectira.com/contribute-to-account/