The IRS recently announced that they have increased the contribution limits for many retirement accounts for 2019. Contribution limits for employees who participate in a 401(k), 403(b), and the Federal Government Thrift Savings Plan have increased from $18,500 to $19,000. However, the catch-up contribution limit for employees aged 50 years or older using these accounts, remains unchanged at $6,000.
The limit on annual contributions to an IRA, which hadn’t increased since 2013, was raised from $5,500 to $6,000. The additional catch-up contribution limit for individuals aged 50 and over remains at $1,000.
Please see the below link to the IRS website for additional information on income phaseouts.
For more information about these new increases or for other tax planning opportunities, please contact your Hertzbach Tax Advisor at 410-363-3200 or 800-899-3633. We look forward to speaking with you.