Are You on Target for 2019?

Published On: November 11, 2019

Written by: Ben Atwater and Matt Malick

For many of us, the most popular method of saving for retirement is into qualified retirement plans.  These plans take on a variety of names, numbers and acronyms and each have their own rules, including various contribution limits. You must have earned income to contribute to these plans. As we approach the waning weeks of 2019, here is a summary of plans and the contribution limits for 2019 and the IRS’ newly announced limits for 2020.  Are you maximizing your opportunity to save in qualified plans? 

Retirement Plan Name	2019 Contribution Limits	2019 Catch-Up Limit
401(k), 403(b), and 457	$19,000	$6,000
SIMPLE IRA	$13,000	$3,000
SEP IRA	$56,000	None
Combined Limit	$56,000	$6,000
IRA Regular and Roth	$6,000	$1,000
Health Flexible Spending	$2,700	None
Health Savings (Family)	$7,000	None

.

Retirement Plan Name	2020 Contribution Limits	2020 Catch-Up Limit
401(k), 403(b), and 457	$19,500	$6,500
SIMPLE IRA	$13,500	$3,000
SEP IRA	$57,000	None
Combined Limit	$57,000	$6,500
IRA Regular and Roth	$6,000	$1,000
Health Flexible Spending	$2,750	None
Health Savings (Family)	$7,100	None

.

The due date for contributions is generally your tax filing date plus extensions for your plan, your business or your individual return. For example, employee deferrals for a plan that stands on its own, like a 401(k), is year-end while employers have until their tax filing deadline to make matching contributions. For a SEP plan, if tied to a distinct business entity, it is the entity filing date. For an IRA, which is an individual plan, the contribution window ends at the individual taxpayer’s filing date.

In other words, before year-end, be sure to maximize your contributions to your employer sponsored retirement plans like 401(k), 403(b), 457 plans and SIMPLE IRAs.

Maximizing plan contributions, to the extent possible, should be your first tier of retirement savings. If you need any assistance on how to best maximize your contributions, whether they be at work or with us, please contact us as soon as possible. The end of the year is rapidly approaching.