27 November 2018, by Christina Knott, Content Strategist
Everything has its limits, including the Internal Revenue Service. Each October the IRS releases limits for pension plans, retirement savings plans and other retirement related financial plans. Take a minute to review the information below, so you’ll know your limits.
For 2019, the worker contribution limit to an employer-sponsored retirement savings plan, like the Concordia Retirement Savings Plan, is $19,000 (up from $18,500 in 2018). The Age 50 Catch-up contribution limit remains unchanged at $6,000.
The annual combined limit for defined contribution plans increased from $55,000 to $56,000. This is the combined limit for all worker contributions and employer contributions to all defined contributions plans.
Do You Qualify for the Saver’s Credit?
Low to moderate income workers can take advantage of the Saver’s Credit (also known as the Retirement Savings Contribution Credit). This tax credit is available to individuals who meet certain income limits and are saving for retirement. Those income limits have been increased to $64,000 for married couples filing jointly, $48,000 for heads of households, and $32,000 for single individuals and married individuals filing separately. If you think you can qualify for this credit, be sure to talk to your tax professional.