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