What You Need to Know About Your 401(k) and IRA in 2019 - SimpliFi
If you imagine your retirement nest egg as a house, then your 401(k) and IRAs are the tools you use to design, build, and remodel it. You want your house to last for years to come and to support your future. So, it’s important to get the most out of your 401(k) and IRA tools today. Because, let’s face it, when retirement comes around someday, you don’t want to be leaving your retirement party realizing that you were the person who whacked his or her thumb with a hammer. So, as we move into 2019, here’s what you need to know: 401(k) Contribution Limits In 2019, you can contribute $500 more into your 401(k) than last year, meaning you can save as much as $19,000. For employees age 50 and older, the catch-up contribution limit remains the same, allowing them to save up to an additional $6,000 in their accounts. Plan ahead so you will get the most from these higher contribution limits. You can work with your plan provider at the start of the year and increase your savings rate. Traditional and Roth IRA Contribution Limits For IRA accounts, you will be able to save up to $6,000, up from $5,500 in 2018. Investors who are 50 and older may save an additional catch-up contribution of $1,000. Tax-Deductible Phase-Outs Depending on your income level, the tax deduction of your Traditional IRA contribution may be partially or completely phased out. But don’t forget: even if your income is too high [...]