For the first time since 2013, the IRS is increasing the annual limit for IRA contributions. You’ll be allowed to put away up to $6,000 in 2019, up from the current limit of $5,500. Similar increases have been approved for 401(k)s, 403(b)s and most 457 plans.
- 401(k) Deferral Limit – Increase from $18,500 to $19,000
- Catch-up Deferral Limit – Remains at $6,000
- Defined Contribution Plan Maximum Annual Additions – Increase from $55,000 to $56,000 (or $62,000 with catch-up)
- Defined Benefit Plan Maximum Annual Benefit – Increase from $220,000 to $225,000
- Annual Compensation Limit – Increase from $275,000 to $280,000
- HCE Compensation Limit – Increase from $120,000 to $125,000
- Key Employee Limit – Increase from $175,000 to $180,000
- Social Security Wage Base – Increase from $128,400 to $132,900
IRAs and 401(k)s are fundamental building blocks toward a secure and comfortable retirement. Moreover, they should be part of a comprehensive financial plan that addresses your retirement goals and puts you on a path to achieving your retirement objectives.