Take It to the Max – New 2019 Deferral Limits
On November 1, the IRS announced increased deferral limits for 2019 for employer-sponsored supplemental retirement plans such as 457(b) and 401(k).1 This is great news – now you can tuck away more dollars for retirement while deferring income taxes.
Log on to FrontLinePlan.com and use My Interactive Retirement PlannerSM along with the table below to see the impact of increasing your contribution. If you have a retirement plan account with Nationwide, you may also schedule time with your local Retirement Specialist or contact Nationwide’s Retirement Resource Group at 888-401-5272 for assistance.
Remember, the beginning of the year is also a good time to check your retirement readiness and make sure your beneficiary designations are up to date.
| Type | 2019 | 2018 | 2019 pre-tax/per pay max (26 pays) | Per-pay reduction * |
|---|---|---|---|---|
| 457(b) Annual Limit | $19,000 | $18,500 | $730 | $547 |
| 457(b) Over Age 50 Catch-Up | $25,000 | $24,500 | $961 | $720 |
| 457(b) Special Catch-Up | $38,000 | $37,000 | $1,461 | $1,095 |
| 401(a) Defined Contribution | $56,000 | $55,000 | N/A | N/A |
| 401(k) Annual Limit | $19,000 | $18,500 | $730 | $547 |
| 401(k) Over Age 50 Catch-Up | $25,000 | $24,500 | $961 | $720 |
| Roth IRA ** | $6,000 | $5,500 | N/A | N/A |
Please note: Special 457(b) catch-up contributions, if permitted by the plan, allow a participant for three years prior to the normal retirement age (as specified in the plan) to contribute the lesser of:
- Twice the annual limit ($38,000 in 2019 and $37,000 in 2018)
- The basic annual limit, plus the amount of the basic limit not used in prior years (only allowed if not using age 50 or over catch-up contributions)
* Assumes 25% tax rate
** First increase since 2013
1 Source: IRS Announces 2019 Pension Plan Limitations, IR-2018-211, Nov. 1, 2018.
Investing involves market risk, including possible loss of principal. No investment strategy — including asset allocation and diversification — can guarantee a profit or avoid loss. Actual results will vary depending on your investment and market experience.
Retirement Specialists are registered representatives of Nationwide Investment Services Corporation: Member FINRA. Nationwide representatives cannot offer investment, tax or legal advice. Consult your own counsel before making retirement plan decisions.
Nationwide, the Nationwide N & Eagle, Nationwide is on your side and My Interactive Retirement Planner are service marks of Nationwide Mutual Insurance Company. © 2018 Nationwide
NRE-0921AO-IF (11/18)