by Jessica Goedtel, Associate Financial Advisor The IRS recently released their cost of living adjustments for 2019.
A few items to note:
The maximum 401(k) contribution has increased to $19,000, from $18,500. The catch-up contribution for those ages 50 and over remains at $6,000.
The annual IRA contribution amount has increased to $6,000 from $5,500. The catch-up contribution remains the same at $1,000. This is the first time since 2013 that this limit has increased.
The overall limitation for defined contribution plans increased by $1,000 to $56,000.
In addition, the income brackets that determine eligibility for certain types of IRA contributions, such as Roth IRAs, have been increased for inflation. More information can be found at the official IRS release. READ MORE
This is a great time to review your current retirement savings strategies to make sure you are taking full advantage of your tax deferral options.