Meet Your Savings Goals: Contribution Limits for 2019
Happy New Year! Now is a great time to assess your retirement and savings strategies and plan for the year to come. Keep in mind you can still contribute to an existing traditional IRA, Roth IRA or Coverdell Education IRA for 2018 until April 15th.
If you would like to begin contributing to an IRA or an education account in 2019, please contact your advisor for guidance specific to your needs. To learn more about Roth IRAs & Education accounts, Danielle Woods' article Client New Year Q&A is a good place to start.
Retirement & Education Account Contribution Limits for 2019
If you are actively contributing to retirement or education plans you should be aware of a few changes to contribution limits that have been put into effect for 2019:
- IRA contribution limit: $6,000 (plus $1,000 catch-up for age 50+).
- Roth IRA contribution limit: $6,000 (plus $1,000 catch-up for age 50+). Roth IRA contributions limit phaseout (AGI): $193,000 to $203,000 (married filing jointly); $122,000 to $137,000 (single and heads of household).
- Maximum 401(k) plan elective deferral: $19,000 (plus $6,000 catch-up for age 50+).
- SEP minimum required compensation: $600; compensation limit: $285,000.
- SIMPLE $13,000 (plus $3,000 catch-up for age 50+).
- 529 Plan contributions have high limits that vary by state. Speak with your advisor before considering a large contribution as gift tax rules may apply.
- Coverdell contribution limit: $2,000. Coverdell contribution income limit (AGI) $220,000 (married filing jointly); $110,000 (single and heads of household).