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4 Important Changes Affecting Your Retirement This Year

Matt Wiley | JAN 4, 2018

It’s a new year, a perfect time to recalibrate your retirement savings plan to make sure you’re contributing the maximum amount to each of your accounts. 

Here’s exactly how much you are legally allowed to contribute to the most common types of retirement accounts in 2019.

1. 401(k)/403(b)

If you’re taking advantage of these popular work-sponsored retirement plans, there’s good news: you can contribute even more to them this year. For 2019, you can now contribute up to $19,000 per year to 401(k) and 403(b) accounts, $500 more than 2018. For those 50 or older making catch-up contributions, the limit remains at $6,000 per year.

2. IRA

For those with an Individual Retirement Account (IRA) instead of a 401(k) or to supplement one, you can contribute up to $6,000 in 2019, up from $5,500. However, catch-up contributions remain at $1,000.

3. SIMPLE plans

If you have an Savings Incentive Match Plan for Employees Individual Retirement Account, or a SIMPLE IRA, the contribution limit is now $13,000, up from $12,500 in 2018. Catch-up contributions remain at $3,000 per year.

4. Social Security

For Social Security tax, which directly impacts your benefits after retirement, the total amount of individual income that can be taxed is now $132,900, up from $128,400 in 2018.

5. The best way to save for retirement

Financial advisors can help you effectively plan how best to maximize your savings, where to invest and how to avoid dangerous tax traps along the way.

This new tool makes it easy to find the right financial advisor for you. Now you can get matched with up to three local fiduciary investment advisors that have passed a rigorous screening process.

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SmartAsset - copyright 2018

SmartAsset - copyright 2018

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