2019 SAVINGS LIMIT INCREASED AND HARDSHIP RULE CHANGES PROPOSED

The IRS is giving a bump in 2019 to retirement plan savers in 401(k), 403(b) and 457 plans to $19,000 – this is the limit an employee can defer from compensation into a retirement plan. Unfortunately, we did not see an increase in the catch-up limit of $6,000 for those over 50, this limit will stay in place for 2019 for plans that allow for catch-up contributions. The limits in Individual Retirement Accounts (IRA) did get a bump as well to $6,000 in 2019. The limit was $5,500 for 2018 and 2017 which will still apply for those making last minute contributions to their IRA’s for the 2018 tax year.