2019 IRA and 401(k) Contributions

January 22, 2019

As is typical, the maximum 401(k) and IRA contributions will increase for 2019.  This year the increase is by $500 for each.

That means that you, as an employee, can contribute up to $19,000 to your 401(k).  If your employer contributes as well, they can contribute up to $27,000 on your behalf, which means that the maximum 401(k) donation is $56,000 from all sources. 

For your IRA, the contribution limit will be $6,000 in 2019.  Of course, if you’re 50 or older, there’s a “catch up” mechanism that allows contributions of an additional $1,000.

That’s quite a bit of money that you can set aside for retirement with tax benefits.  Definitely consider doing this if you can afford to.