Great news for savers!
The I RS 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.
Related: How to Best Use an HSA to Your Benefit
For the full list of changes here is the IRS announcement