Smart Benefits: New Retirement Plan Limits Set for 2019
Monday, November 26, 2018
- 401(k)s: The contribution limit for employees who participate in 401(k), 403(b), most 457 plans, and the federal government’s Thrift Savings Plan increases from $18,500 to $19,000. The catch-up contribution limit for employees age 50 or older in these plans remains the same at $6,000.
- IRAs: The limit on annual contributions to an IRA, which last increased in 2013, rises from $5,500 to $6,000. The additional catch-up contribution limit for individuals aged 50 and over (which is not subject to an annual cost-of-living adjustment) remains $1,000.
- SIMPLE Plans: The limit under Section 408(p)(2)(E) regarding SIMPLE retirement accounts goes up from $12,500 to $13,000. The catch-up limit remains $3,000.
- SEP IRAs and Solo 401(k)s: The amount the self-employed and small business owners can save in a SEP IRA or a solo 401(k) increases to $56,000 in 2019. That’s based on the amount they can contribute as an employer, as a percentage of their salary; the compensation limit used in the savings calculation also goes up to $280,000 in 2019.