This year was a good year for Roth loving folks like us.

The employee elective deferral is up another $500, which means you can call your payroll department to increase your deferral for 2019.

For those who are also fortunate to have Roth 457 plans, you can also increase your Roth deferred compensation by $500.

And, for the first time since 2015, the IRA contribution limit has been increased! Now, you can save $500 more per year per person.

For a lucky few, this might mean $1,500 more dollars of Roth savings each year.

If you are stretched thin and are thinking, “I can’t afford to save more!” You might appreciate reading our articles “Fund Your Roth IRA Even When You Can’t Afford It ” and “How to Convert Taxable Savings Into Your Roth IRA.”

Tax Year 2019

Account Type	Requirements		Contribution Limit	Change from 2018
Traditional or Roth IRA Contribution (subject to phaseouts, limited by wages)	Age 49 and under		$6,000	+$500 to base contribution limit catch-up remains at $1,000
	Age 50 and over		$7,000
Employee Elective Deferral 401(k) or 403(b) plans	Age 49 and under		$19,000	+$500 to base contribution limit catch-up remains at $6,000
	Age 50 and over		$25,000
Employee Deferred Compensation 457(b) plans	Age 49 and under		$19,000	+$500 to base contribution limit catch-up remains at $6,000
	Age 50 and over		$25,000
Employee Elective Deferral SIMPLE 401(k) or IRA Plan (with further limitations)	Age 49 and under		$13,000	+$500 to base contribution limit catch-up remains at $3,000
	Age 50 and over		$16,000
SEP IRA Employer Contribution 401(k), 403(b), or 457 plans Employer Contribution	The smaller of:		$56,000 or 25% of compensation	+$1,000 to base contribution limit
Health Savings Account (HSA) Contribution	Single Plan	Age 54 and under	$3,500	+$50 to base single contribution limit +$100 to base family contribution limit catch-up remains at $1,000
		Age 55 and over	$4,500
	Family Plan	Age 54 and under	$7,000
		Age 55 and over	$8,000

 

You can find the current contribution limits here: Account Contribution Limits
and the IRS page on the same topic here: Retirement Topics – Contributions

Featured Image by Melissa Walker Horn on Unsplash