On 11/1/2018, the Internal Revenue Services announced 2019 retirement plan contribution limits.
The limit increased to $19,000, up $500 from $18,500 in 2018, for 401(k) plans, as well as 403(b) plans, most 457 plans and the federal government’s Thrift Savings Plan, the Internal Revenue Service said Thursday. The catch-up contribution limit for employees 50 and older remains unchanged at $6,000, which means an employee 50 or older can put as much as $25,000 ($19,000+$6,000) in their 401(k) plan. Actual deposits into an employee’s account can be much more if employers do a match or profit sharing contribution.
Individual Retirement Accounts (IRAs) are also getting a boost for the first time in six years with the new limit going to $6,000 annually, up from $5,500. The catch-up amount for IRAs is unchanged at $1,000.
Another change is to the income level for the Saver’s Credit. The income limit for the credit for low- and moderate-income workers has also increased. For married couples filing jointly, the limit is now $64,000, up from $63,000; for heads of household, it’s $48,000, up from $47,250; and for singles and married individuals filing separately, it’s $32,000, up from $31,500.
This news, while good for many who would like to bolster their retirement savings, does not apply to all — or even many — Americans. Not all workers have access to an employer-sponsored retirement account. MidwestHR clients have access to a NO COST 401k plan as part of their services with MidwestHR. It may be time to consider utilizing MidwestHR for your employer administrative needs, including retirement savings.
Contact the MidwestHR Business Development team at (630) 836-3000 to discuss adding PEO services and a retirement plan benefit for you and your staff members!