You Can Save More to Your IRA in 2019

Do you save for retirement? Here’s some good news! In 2019, you can contribute more than ever into your IRA.

Traditional IRA contributions increased by $500, now totaling $6,000 for anyone under 50. If you are turning 50 or older this year, you can contribute up to $7,000 to your IRA.

1.    IRS Increases IRA Limit

This is the first increase to the annual contribution limit since 2013. For the past five years, anyone under the age of 50 was able to contribute a maximum of $5,500, or $6,500 for those 50 and older. IRA contribution limits are adjusted periodically to keep up with the cost of living. These contributions are only increased in $500 increments, so they don’t necessarily increase each year we experience inflation.

2.    Rules to Remember

A word of caution as you plan out your contributions for the year: not everyone is eligible to contribute the full amount. Here are some rules to remember:

  • IRA contribution limits are per-person, not per-account
  • You can make IRA contributions anytime during the calendar year, or in the following calendar year up to the regular tax deadline (April 15).
  • You must be earning an income
  • Taxable income might not be considered earned income (i.e. social security/investment income)
  • Anyone 70 ½ or older cannot make traditional IRA contributions. However, if you are still working and your employer offers a 401(k), you might be able to participate in the plan. Talk to a fiduciary advisor to see if you are eligible.
  • You might make too much money to contribute to a traditional IRA
  • You might have limits on your deductions for traditional IRA contributions

Also, keep in mind that the higher limit applies to contributions made for 2019, not necessarily all contributions made in 2019. If you are planning to make a 2018 contribution in 2019, you will be limited to the 2018 amount of $5,500 ($6,500 if you are over 50).

3.    Other Limits Increased

The IRA raised limits on other retirement accounts as well. Salary deferrals into 401(k) plans have increased to $19,000 and $25,000 if you are 50 or older. Other increased limits include the eligibility to make a Roth IRA contributions and limits for deductibility of traditional IRA contributions for active participants. For more information on the new 2019 limit changes, visit the IRS website.


I encourage you to seek out professional advice when planning out your annual contributions. A fiduciary financial advisor can help you maximize your contributions and answer any question along the way. Strategically placing your retirement savings is vital to your future and we would love to help guide you on your journey.


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