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Max Contributions for Retirement Accounts

Max Contributions for Retirement Accounts

Max Contributions for Retirement Accounts

Do you find yourself confused about what your max contributions are for your different retirement accounts? It can be hard enough just keeping your accounts straight, let alone trying to track down what the contributions are.

Therefore, we’ve created a simple cheat sheet to help you know what max contributions are for common types of retirement accounts. All information and ideas should be discussed in detail with your individual adviser prior to implementation.

*Note that all contribution limits are employee limits, the information provided does not include employer limits on these accounts, if any.

Max Contributions for Retirement Accounts:

Type of Account

  • Traditional IRA

Age & Contribution Limits

  • 49 or younger – $5,500 per year (for one person)
  • 50 or older – $6,500 per year (for one person)

Restrictions

  • Contribution limits may not apply if you are doing a Rollover conversion
  • You cannot make regular contributions to a Traditional IRA after you reach age 70 ½, however, you may continue to do Rollover contributions

Type of Account

  • Roth IRA

Age & Contribution Limits

  • 49 or younger – $5,500 per year (for one person)
  • 50 or older – $6,500 per year (for one person)

Restrictions

  • Filing Jointly or qualifying widow(er)
    • Full contributions if income = $186,000 or less
    • Reduced contributions if income = > $186,000 and < $196,000
    • No contributions if income = > $196,000
  • Married, filing separately and you lived with spouse at any time in the year
    • Reduced contributions if income = < $10,000
    • No contributions if income = > $10,000
  • Single, Head of Household, Married, filing separately and you did not live with your spouse at any point in the year
    • Full contributions if income = < $118,000
    • Reduced contributions if income = > $118,000 and < $133,000
    • No contributions if income = > $133,000
  • These income restrictions are based on your Modified Adjusted Gross Income (MAGI)

Type of Account

  • SIMPLE IRA

*Contributions are salary reduction contributions.

Age & Contribution Limits

  • 49 or younger – $12,500 per year
  • 50 or older – $12,500 per year with an extra $3,000 if the plan allows for catch-up contributions.

Restrictions

  • If an employee has multiple retirement accounts from any other employer and contributes to those plans with elective salary reductions, the total amount that the employee can contribute for the year is $18,000.

Type of Account

  • Traditional 401(k)

*Contributions are considered elective deferrals from your salary

Age & Contribution Limits

  • 49 or younger – $18,000 per year
  • 50 or older – $18,000 per year, with additional $6,000 in catch-up contributions if plan allows.

Restrictions

  • $18,000 contribution limit is determined by ALL elective deferrals that are made to retirement accounts.
  • Note that your plan’s terms may impose a lower limit on elective deferrals, consult your employer’s plan for specific information.

Type of Account

  • SIMPLE 401(k)

*Contributions are considered elective deferrals from your salary

Age & Contribution Limits

  • 49 or younger – $12,500 per year
  • 50 or older – $12,500, additional $3,000 in catch-up contributions if your plan allows.

Restrictions

  • If you have a SIMPLE 401(k) and regular 401(k), you may have $18,000 contribution limit that is determined by ALL elective deferrals that are made to retirement accounts.
  • Note that your plan’s terms may impose a lower limit on elective deferrals, consult your employer’s plan for specific information.

Type of Account

  • 403(b)

*Contributions are considered elective deferrals from your salary

Age & Contribution Limits

  • 49 or younger – $18,000 per year
  • 50 or older – $18,000 per year, with additional $6,000 in catch-up contributions if plan allows.

Restrictions

  • $18,000 contribution limit is determined by ALL elective deferrals that are made to retirement accounts.

Type of Account

  • 457(b)

*Contributions are considered elective deferrals from your salary

Age & Contribution Limits

  • All ages – $18,000 per year
  • Catch-up contributions – the age and limits of catch-up contributions varies with this type of account. Review your specific plan’s details for more information on this.

Restrictions

  • $18,000 contribution limit is determined by ALL elective deferrals that are made to retirement accounts.

SOURCE: https://www.irs.gov/retirement-plans/

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