The IRS adjusted its contribution limit to your retirement account. You’ll be able to avail of the additional tax savings when you file your taxes in 2020. Generous employers can give you extra towards your retirement account. We summarized the changes with a table that you can use as a guide.
Most of the tax brackets can take advantage of the savings. Contact your local tax office and inquire about the tax savings and how you can save more within the following year.
| Type | 2018 | 2019 |
| 401K | $18,500 | $19,000 |
| IRA contribution Limit | ||
| Traditional and Roth IRA <50 yrs old | $5,500 | $6,000 |
| Catch-up IRA contribution | $1000 | $1000 |
| SEP IRA for employers | $55,000 | $56,000 |
| Catch-up contribution limit for >50 yrs old | $3,000 | $3,000 |
| Retirement Savings income limits for contributions | ||
| Married filing jointly | $63,000 | $64,000 |
| Head of household | $47,250 | $48,000 |
| Single Taxpayer | $31,500 | $32,000 |
Let us know if you don’t see your retirement contribution here and if you need help in planning. There are more detailed plans that can affect you in the future.