• James D. Lynch

RETIREMENT CONTRIBUTION LIMITS WILL INCREASE IN 2019

The IRS announced cost of living adjustments for qualified retirement plans for tax year 2019. Some of the key updates are as follows:


● The 401(k) contribution limit increases to $19,000 in 2019 (up from $18,500 in 2018).


● The IRA contribution limit, which last increased in 2013, increases from $5,500 to $6,000 in 2019.


● The contribution limit for SIMPLE retirement accounts is increased from $12,500 to $13,000.


● The contribution limit for a Defined Contribution Plan (such as a 401(k) plan with employer match) increases to $56,000 in 2019 (up from $55,000 in 2018).


● The additional catch-up contribution limits for individuals aged 50 and over remains unchanged in 2019 ($6,000 for 401(k) plans, $1,000 for IRAs, and $3,000 for SIMPLE plans).