401(k) Retirement Savings Level to Increase in 2019
Retirement may last for decades and having enough money to last that long is a concern of many investors. Good news: in 2019 you can put away more than ever before in your 401(k) or similar workplace plan:
Up from $18,500 in 2018, in 2019 you can tax-defer up to $19,000 in your 401(k). Individual Retirement Account (IRA) limit in 2019 is $6,000. Catch up contributions for those investors age 50+ are $6,000 for workplace plans and $1,000 for IRAs. Please note that employer match numbers are not part of these limits.
Are you saving enough for retirement? Let’s talk.
Contributions to a traditional IRA may be tax deductible in the contribution year, with current income tax due at withdrawal. Withdrawals prior to age 59 ½ may result in a 10% IRS penalty tax in addition to current income tax.
The opinions expressed are those of the author. Seek professional advice before taking any action in regard to your finances.
Todd A. Slingerland, CFP®
6 Tower Place Albany, NY 12203