4. Higher retirement account contribution limits
This year, you can stash more cash in various types of tax-advantaged retirement accounts, as we detail in “Limits for 401(k), IRA and Other Retirement Plans to Rise in 2019.”
Contributions that you make to such accounts, including traditional 401(k) plans and traditional individual retirement accounts (IRAs), in 2019 could be deductible on your next tax return.
The 2019 contribution limits include:
- 401(k) base contribution: $19,000 (up from $18,500 last year)
- 401(k) catch-up contribution (for taxpayers age 50 and older): additional $6,000 (unchanged)
- IRA base contribution: $6,000 (up from $5,500)
- IRA catch-up contribution (for taxpayers age 50 and older): additional $1,000 (unchanged)
The increases to IRA contributions limits for 2019 are a particularly big deal, as this is the first year since 2013 that IRA limits have budged.
