Beginning in 2019, you will be able to save more in your retirement plans.
401(K) PLANS, 402(B) PLANS, AND MOST 457 PLANS
If you are under 50 years old, the annual contribution cap is $19,000 (was $18,500).
If you are over 50, the annual contribution cap is $25,000 (was $24,500).
TRADITIONAL IRA’S
The annual contribution cap is $6,000 (was $5,500).
The “catch up” contribution for those 50 or older remains unchanged at $1,000.
ROTH IRA’S
Singles, Head of Household, or Married Filing Separately If You Did Not Live With Spouse During The Year:
You may make direct contributions if your income is less than $122,000 (was $120,000). Those under age 50 may contribute up to $6,000. Those age 50 or older may contribute up to $7,000.
You are not permitted to make direct contributions if your income exceeds $137,000 (was $135,000).
If your income is between $122,000 and $137,000 you may make a prorated contribution.
Married Couples Filing Jointly:
You may make direct contributions if your income is less than $193,000 (was $189,000). Those under age 50 may contribute up to $6,000. Those age 50 or older may contribute up to $7,000.
You are not permitted to make direct contributions if your income exceeds $203,000 (ws $199,000).
If your income is between $193,000 and $203,000, you may make a prorated contribution.
*If your income is too high to contribute to a Roth IRA, it may be possible to first establish a traditional IRA and convert it to a Roth. However, there can be financial repercussions when doing so. See your accountant for guidance. You can also read about Roth IRAs at the Internal Revenue website here.
