06 Nov An easy way to help your employees out…
Make sure everyone knows about new IRS limits for next year.
The IRS recently announced 401(k) contribution limits for next year, along with related updates for health savings accounts (HSA), pensions and other retirement plans. Cost-of-living adjustments are made to the contribution limits each year.
With your employees in mind, it’s a good time to remind them about contributions and saving for retirement, especially if they’re in a position to max out their contributions or are old enough to make catch-up contributions.
Notable changes for 2019
- The contribution limit increased to $19,000 for employees who participate in 401(k) and many other plans, up $500 from last year.
- The definition of a highly-compensated employee’s salary has increased to $125,000, up $5,000 in 2019.
- For health savings accounts, the contribution limit increased to $3,500 for individuals and $7,000 for families.
What stays the same
- Catch-up contribution limits for 401(k) plans and HSAs both remain the same.
- For 401(k) contributions, the limit is $6,000 in 2019 for individuals age 50 and older.
- For HSAs, the limit is $1,000 for those age 55 and older.
For additional information, visit the IRS news release for details.