Taxpayers will have the opportunity to save more in 2019 without tax repercussions. In its first increase since 2013, the IRS announced that contribution limits for certain retirement accounts will bump up in tax year 2019.
This is good news for the many Americans (46 percent) who believe financial comfort in retirement may be out of reach, according to a report by Gallup (see Is your investor retirement strategy ready for the summit?). The higher annual contribution limits for tax-advantage retirement accounts allows individuals to put away more money for retirement when contributions are maxed out.
Contribution limit increases
According to the IRS, the IRA contribution limit does not apply to:
- Rollover contributions
- Qualified reservist repayments
Phaseout ranges increased
Take action
By maximizing contributions in 2019, taxpayers can take advantage of compounding and market growth for longer. Although these changes don’t take effect until next year, get your planning started early.
Step in and talk to us about reviewing your progress to retirement, contribution schedule, and whether additional tax-advantaged retirement savings accounts might be in your best interest, putting you in control of your financial future.
Read more on our blog
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- Lessen the tax bit for a fuller retirement
- Is your investor retirement strategy ready for the summit?
- SEP vs. SIMPLE: Which is right for your business?
- Bankruptcies boom, highlighting need to build wealth early
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