Retirement
IRA Limits | 2018 | 2019 |
---|---|---|
IRA – Traditional or Roth (income limits apply) |
$5,500($6,500 for those age 50 or older) | $6000 ($7000 for those age 50 and older) |
SEP IRA Limits | 2018 | 2019 |
Employee | 0 | 0 |
Employer | Up to 25% of W-2 wages for all eligible employees, $54,000 max | Up to 25% of W-2 wages for all eligible employees, $56,000 max |
Self-Employed | 20% of (net self-employment income minus SE tax), $54,000 | 20% of (net self-employment income minus SE tax), $56,000 max |
Simple IRA | 2018 | 2019 |
Employee | $12,500 ($15,500 for those age 50 or older) | $13,000 ($16,000 for those age 50 or older) |
Employer | Option 1: match employee contributions up to 3% of gross wages (can be reduced as low as 1% in 2 out of 5 years); or Option 2: 2% of wages for all employees (including nonparticipants) |
Option 1: match employee contributions up to 3% of gross wages (can be reduced as low as 1% in 2 out of 5 years); or Option 2: 2% of wages for all employees (including nonparticipants) |
Self-Employed | 100% of self employment income up to $12,500 ($15,500 for those age 50 or older) PLUS 3% of (remaining self employment income minus one half of SE tax) | 100% of self-employment income up to $13,000 ($16,000 for those age 50 or older) PLUS 3% of (remaining self-employment income minus one half of SE tax) |
401-K | 2018 | 2019 |
Employee | $18,500 ($24,500 for those age 50 and older) | $19,000 ($25,000 for those age 50 and older) |
Employer | Up to 25% of W-2 wages; Wages up to $275,000; | Up to 25% of W-2 wages. Wages up to $280,000 |
Employee + Employer combined | $55,000 ($61,000 for those 50 and older) | $56,000 ($62,000 for those age 50 and older) |
Self Employed | 100% of self employment income up to $18,500 ($24,500 for those 50 and older) PLUS up to 20% of (remaining self employment income minus one half of SE tax) max $54,000 ($60,000 for those age 50 and older) | 100% of self-employment income up to $19,000 ($25,000 for those 50 and older) PLUS up to 20% of (remaining self-employment income minus one half of SE tax) max $56,000 ($62,000 for those age 50 and older) |
Catch up contributions for individuals 55 or older (but less than 65) – $1,000 Contribution limits are prorated (1/12 per month) for a partial year. |