As we move into 2019, it’s helpful to know contribution limits and Social Security changes.
Individual Retirement Accounts: The annual contribution limits for traditional and Roth IRA’s have increased to $6,000, a boost of $500 over 2018 contribution limits. The catch-up contribution limit for those age 50 and older remains at $1,000.
401(k)s: The annual contribution limits for 401(k)’s, 403(b)’s, most 457 plans, and the federal government’s Thrift Savings Plan have increased to $19,000, a boost of $500 over 2018 contribution limits. The catch-up contribution limit for employees age 50 or older in these plans stays at $6,000 for 2019.
SIMPLE IRA: The limit for SIMPLE IRA’s goes up from $12,500 in 2018 to $13,000 in 2019. The catch-up limit remains the same at $3,000 for those age 50 and older.
Health Savings Accounts: The “self-only” annual contribution limit will increase from $3,450 to $3,500 and the “family” annual contribution limit will increase from $6,900 to $7,000 in 2019.
Social Security Updates:
- Beneficiaries will see a 2.8% increase in payments
- Maximum taxable earnings will increase to $132,900
- Maximum benefit at full retirement age increases to $2,861 per month
ABOUT THE AUTHOR
AJW Financial, Inc.
Amy Wolff’s clients describe her as a financial educator and coach. She listens to their diverse concerns and guides them through life’s most stressful transitions toward confident financial literacy and independence. By remaining accessible and open to any question, Amy helps clients avoid pitfalls and make decisions today that align well with their plans long-term. Her approach to personalized financial guidance has given countless clients a non-judgmental place to make well-reasoned financial decisions for their futures and their loved ones.
Amy is a CERTIFIED FINANCIAL PLANNER™ professional and a Certified Divorce Financial Analyst® practitioner. Feel free to learn more at www.ajwfinancial.com.
Amy Jensen Wolff, CFP®, CDFA®
3300 Edinborough Way, Suite 550
Edina, MN 55435
Amy Wolff is a Registered Representative offering securities and advisory services through Cetera Advisor Networks LLC, member FINRA/SIPC, a Broker/Dealer and a Registered Investment Advisor. Investment advisory services also offered through AdvisorNet Wealth Management. Cetera is under separate ownership from any other named entity.
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