401K Contribution Limits 2019
Each year the IRS publishes updated Maximum 401K contribution limits, as well as catch-up contribution limits for the new year. Typically, the limits the IRS sets each year is based on inflation factors (with minimum $500 increases), so they do not necessarily increase the limit each year.
The 401K Max Contribution Limit for 2019 has now been set, with a $500 increases over 2018 to $19,000. The Maximum 401K contribution Limit for 2017 and 2018 was $18,000 and $18,500, respectively (there was no increase in 2016).
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As you can see, the Maximum 401K contribution limits do not rise dramatically each year. Although over time, if investors are diligent about increasing their contributions, it can certainly make a difference. The limit on contributions for 401K, 403B, most 457 plans, and the Federal Government Thrift Savings Plan (TSP):
- 2019 – $19,000
- 2018 – $18,500
- 2017 – $18,000
- 2016 – $18,000
- 2015 – $18,000
- 2014 – $17,500
- 2013 – $17,500
- 2012 – $17,000
- 2011 – $16,500
- 2010 – $16,500
- 2009 – $16,500
- 2008 – $15,500
For those of you that are over age 50 (or turn age 50 before the end of the year), you are allowed an additional 401K catch-up contribution. These limits also adjust for inflation, but at a much slower pace. The $500 increase to $6,000 for 2015 was the first 401K catch up increase since 2009. For 2019, there is NO increase:
- 2019 – $6,000
- 2018 – $6,000
- 2017 – $6,000
- 2016 – $6,000
- 2015 – $6,000
- 2014 – $5,500
- 2013 – $5,500
- 2012 – $5,500
- 2011 – $5,500
- 2010 – $5,500
- 2009 – $5,500
- 2008 – $5,000
READ: Social Security Leveling Option
In addition to total allowable employee 401K contributions, there is a maximum total contribution allowed into your 401K (when factoring in employer match). For 2018, the maximum allowed to be contributed into your 401K has increased from $54,000 to $55,000 (or 100% of income, whichever is greater) with minimum $1,000 increases thereafter. Therefore, with employee standard contributions, potential over-50 “catch-up” contributions, plus employer contributions, the maximum overall contributions are $61,000 in 2017.
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About Robert Henderson and Lansdowne Wealth Management
Robert Henderson is the President of Lansdowne Wealth Management, an independent, fee-only advisory firm in Mystic, CT. His firm specializes in financial planning and investment management for retirement, with a special focus on the particular needs of women that are divorced or widowed. He is an Accredited Asset Management Specialist and a Certified Divorce Financial Analyst. Mr. Henderson can be reached at 860-245-5078 or bhenderson@lwmwealth.com. You can also view his personal finance blog, The Retirement Workshop at http://lwmwealth.com/blog and the firm’s website at https://lwmwealth.com.
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