Hello from Sycamore,

Retirement and health savings plan contribution limits will be changing for the upcoming year. Here is an overview of what you need to know:

  1. 401(k), 403(b), 401(a), 457, and federal government Thrift Savings Plans contribution limits will be increased by almost 10% to $22,500.
    a. Catch-up contributions for those aged 50 and over will be increased to $7,500 making the total contribution limit $30,000 for the year.
  2. IRA contribution limits will be $500 higher and moved to $6,500.
    a. Catch-up contributions for those aged 50 and over will remain the same at $1,000 making the total contribution limit $7,500 for the year.
  3. SIMPLE IRA contribution limits will be raised by $1,500 to $15,500.
    a. Catch-up contributions for those aged 50 and over will be increased to $3,500 making the total contribution limit $19,000 for the year.
  4. SEP IRA contribution limits will be moved up to $66,000.
    a. SEP IRAs do not allow for catch-up contributions.
  5. Health savings account contribution limits will be higher at $3,850 for individuals and $7,750 for families.
    a. Catch-up contributions for those aged 55 and over will remain the same at $1,000 making the total contribution limit $4,850 and $8,750 for the year

We encourage you to forward this email or share this information with anybody that you feel it could benefit. And as always, do not hesitate to reach out with any questions or concerns.

As always, never hesitate to contact us with any questions or concerns.

Thank you for your continued trust and support,

Sycamore Financial Group

***This article is distributed for general informational and educational purposes and is not intended to constitute legal, tax, accounting, or investment advice.***