Retirement Planning - New Contribution Limits

Many of our clients have retirement plans with us which is a major part of the Financial Planning process. It is important to be aware of the new contribution limits for the most common retirement plans on our platform. Of course, you should loop in your CPA to ensure that the contribution limits apply to your current situation. If you would like to alter your existing monthly contributions with us, please reach out to us to modify your incoming drafts.

With the market down from last year, we believe it is as good of a time as any to put away for retirement, save on taxes and potentially buy while the stock market is lower than this point last year. 

Let us know if you have any questions and Happy New Year!!!

• Traditional IRA and Roth IRA accounts
  • Limit for annual contributions has increased to $6,500 (and $7,500 if 50+)
  • Catch-up contributions for 50+ will remain at $1,000

• Simple IRA accounts
  • Contributions for employees have increased to $15,500
  • Catch-up contribution limits for employees aged 50+ have increased to $3,500

• SEP IRA accounts
  • The total contributions to an employee’s SEP IRA cannot exceed the lesser of $66,000 or 25% of compensation
  • No catch-up contributions if 50+

• 401k plans
  • Contributions have increased to $22,500 for employee contributions
  • The catch-up contribution limit for 401k plans is increasing to $7,500 (for a total of $30,000) if 50+
  • The limit on the total employer and employee contributions cannot exceed $66,000 or 100% of your compensation, whichever is less (and with a $7,500 catch-up for 50+, the limit is $73,500)

*The foregoing information has been obtained from sources considered to be reliable, but we do not guarantee that it is accurate or complete, it is not a statement of all available data necessary for making an investment decision, and it does not constitute a recommendation