As we ring in the new year, the IRS has announced new retirement account contribution guidelines for 2019. Contributing more to your retirement accounts can lead to a lower tax bill now – not to mention having more savings available during retirement.
For the first time since 2013, the IRA and Roth IRA contribution limits have been raised – to $6,000, up from $5,500. (Catch-up contributions for workers ages 50 and older remain the same, at $1,000.) Those who contribute to many common types of retirement plans, including 401(k) and 403(b) plans, are able to increase their annual contribution to $19,000 in 2019, which is up from $18,500.
For more information on eligibility, you can view the IRS highlights at IRS.gov, and check in with your tax professional for advice specific to your needs.