The Internal Revenue Service has announced the cost-of-living adjustments applicable for all types of qualified retirement plans and IRAs.
For 2019, highlights include:
The Annual Contribution Limit for 401(k), 403(b) and 457 plans increased from $18,500 to $19,000. The Catch-up Contribution Limit remains unchanged at $6,000.
The Annual Contribution Limit for SIMPLE retirement plans increased from $12,500 to $13,000. The Catch-up Contribution Limit remains unchanged at $3,000.
The Annual Contribution Limit for Traditional IRAs and Roth IRAs increased from $5,500 to $6,000. The Catch-up Contribution Limit remains unchanged at $1,000.
The Annual Compensation Limit, which applies to employer-sponsored retirement plans, increased from $275,000 to $280,000.
The Social Security Wage Base increased from $128,400 to $132,900.
We invite you to contact us to discuss how any of the limitation changes may impact your retirement savings strategy.