It may seem early in the year to think about beefing up your nest egg, but as they say, the early bird gets the worm. And in order to develop a retirement savings plan for 2019, you need know the 2019 limits for retirement account contributions.
The Internal Revenue Service (IRS) sets different contribution limits for different types of retirement accounts. Since they tend to change each year, keeping up with them can be difficult. Plus, if you are 50 or older, you can make additional catch-up contributions.
To simplify retirement account contribution limits, we have listed the 2019 limits to the right. You can make contributions for 2019 until the tax-filing deadline of April 15, 2020.
Traditional IRAs and Roth IRAs
Contribution limit: $6,000
Age 50 catch-up contribution limit: $1,000 extra
Deferred-contribution plans, such as 401(k), 403(b), and 457 plans
Contribution limit: $19,000
Age 50 catch-up contribution limit: $6,000 extra
SIMPLE IRAs
Contribution limit: $13,000
Age 50 catch-up contribution limit: $3,000 extra
Note that there are also income limits when it comes to retirement account contributions (assuming you are covered by a workplace retirement plan).
You can contribute to a traditional IRA in 2019 only if your adjusted gross income (AGI) is less than $74,000 if you are single or $123,000 if you are married filing jointly. And, the amount that you can contribute starts to phase out if your AGI is more than $64,000 for singles and $103,000 for couples.
You can only contribute to a Roth IRA in 2019 if your AGI is less than $137,000 if you are single or $203,000 if you are married filing jointly. And, the amount that you can contribute starts to phase out if your AGI is more than $122,000 for singles and $193,000 for couples.
This material has been prepared for informational purposes only and is not intended to provide and should not be relied on for tax, legal, or accounting advice.