Annual Maximum Contribution Limits
will Increase in 2019
Great news, you can save MORE in 2019! The IRS recently announced the annual maximum contribution limit for employees participating most 457 plans – like the MO Deferred Comp Plan – will increase from $18,500 to $19,000, while the age 50 or older catch-up contribution limit will remain at $6,000 in 2019. Contribution limits are determined by either an increase or decrease in the cost-of-living index and directly affects how much you can contribute to your MO Deferred Comp account. This annual contribution limit increase will allow you to save more money now, in order combat the rising cost of living in the future. Below are the contribution limits for the 2019 tax year.
2019 Contribution Limits
|Maximum Annual Deferral – under age 50||$19,000|
|Age 50 and Over Catch-up Provision Limit||$6,000 ($25,000 total)|
|Pre-Retirement Catch-up Provision Limit||$19,000 ($38,000 total)|
Changes were also made to the adjusted gross income (AGI) maximum limit to qualify for the saver's credit. The saver’s credit, also known as the retirement savings contribution credit, is a special tax break for low- and moderate-income taxpayers who are saving for retirement. The level of credit you receive – 50%, 20% or 10% – depends on your adjusted gross income and filing status in the tax year you made retirement contributions. The table below displays the 2019 limits for utilizing the credit.
2019 Saver's Credit Limits
|Credit Rate||Married Filing Jointly||Head of Household||All Other Filers**|
|50% of your contribution||AGI not more than $38,000||AGI not more than $28,500||AGI not more than $19,000|
|20% of your contribution||$38,001 - $41,000||$28,501 - $30,750||$19,001 - $20,500|
|10% of your contribution||$41,001 - $63,000||$30,751 - $47,250||$20,501 - $31,500|
|0% of your contribution||more than $63,000||more than $47,250||more than $31,500|
For more information, please visit the IRS website.