Revised Retirement Contribution Limits

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Revised Retirement Contribution Limits
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• The government have of course made many changes
  to tax laws over the years, and with the current
  reforms, it can be difficult to stay on top of
  all the alterations, adjustments and revised
  regulations. When it comes to retirement, the
  changes to contribution limits can be hard to
  stay abreast of, but its essentially good news
  for retirement savers in 2019. Changes to
  individual retirement accounts such as 401(k)
  plans, traditional IRAs and even ROTH IRA, are
  all part of the annual inflation adjustments
  recently made by the IRS. Lower tax bills
  naturally come as a result of larger retirement
  contributions and can also mean more income in
  retirement

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• Traditional IRAS and ROTH IRAs
• Traditional IRAs will come with a new
  contribution limit of 6,000 this year, an
  increase from 5,500, a figure that has stayed
  the same since 2013. This increase is as a direct
  result of the IRS inflation adjustments recently
  announced.
• Revised 401(k) Contribution Limits
• If you have a 401(k) plan, then you will be able
  to increase your maximum contribution up to
  19,000 before taxes in 2019, according to the
  IRS. The previous allowable contribution level
  was set at 18,500, making it a 500 increase.

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• A 401(k) plan is one of the most common
  employer-sponsored retirement accounts, with a
  403(b) being another type that is used
  predominantly for public school and non-profit
  employees. 457 plans are more common among
  government employees. To help you further, here
  is a list of the increased limits on
  contributions for several retirement accounts in
  2019
• New contribution limits
• Employees participating in a 401(k), 403(b) and
  most 457 plans as well as the federal governments
  Thrift Savings Plan, have had the contribution
  limit increased from 18,500 to 19,000

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• Annual contributions to an IRA previously
  having remained the same since 2013 have seen a
  limit increase from 5,500 to 6,000
• Remaining unaltered at 6,000, is the catch-up
  contribution limit (a higher threshold for
  employees of 50 ad above using these accounts)
• Various reports, surveys and studies carried out
  in recent years, have indicated that US citizens
  are far from prepared for retirement, with almost
  half of the entire population believing that
  their retirement savings will never reach 1
  million, despite the fact that more than 30 of
  Americans expect to need more than that amount to
  survive on once they stop working.

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• For more detailed advice and guidance on
  retirement plans and how changes to the tax law
  could affect your savings for retirement, make an
  appointment with your local retirement specialist
  to discuss matters further.
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