The IRS typically adjusts maximum amounts for retirement plans each year, although the changes are usually small. For 2019, you can squirrel $19,000 away in your 401(k), 403(b), most 457 plans, and the federal government's Thrift Savings Plan. The annual limit for IRAs is $6,000. The catch-up contribution limit for individuals aged 50 and over is $1,000 for IRAs and $6,000 for most employer plans.
Catch-up contributions help you increase your retirement savings; when you're young, you aren't thinking about retirement. Also, you probably have less income and more expenses—such as those that come with having children. As you get older, you may wish you were able to contribute more to make up for limited contributions in the past.
You can deduct contributions to a traditional IRA if you meet certain conditions: If during the year, either you or your spouse was covered by a retirement plan at work, the deduction may be reduced or phased out until it is eliminated, depending on filing status and income and if you weren't covered by a pension plan at work. Here are the phaseout ranges for 2019:
Finally, savers should be aware of Section 415 limits:
If saving more remains a resolution you make to yourself every year, this is good news for you. You can now put away more money toward your retirement accounts, including individual retirement accounts that have been bumped up for the first time since 2013.
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