Retirement Contribution Limits

Published On: February 20, 2019

Written by: Ben Atwater and Matt Malick

For U.S. workers, 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. Here is a summary of plans and the contribution limits for 2018 and for 2019.

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.

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.  Tax deadlines are rapidly approaching.