Good news from the Treasury Department for those planning ahead for retirement. Cost of living adjustments mean more money may be tucked away in retirement plans in 2019.

2018 Maximum 2019 Maximum
IRA Contribution Limit $5,500 $6,000
401(k)/workplace account $18,500 $19,000
SEP/Solo 401(k) Plans $55,000 $56,000
SIMPLE Plans $12,500 $13,000

 

Using an IRA to save for retirement is nothing new. However, forward-thinking individuals can use money in these qualified accounts to help pay for long-term care. Some financial solutions allow a trustee-to-trustee transfer – avoiding an adverse tax consequence – that moves the IRA money into a policy that provides a monthly benefit for long-term care. If that money is not used for long-term care, it is distributed to heirs as a death benefit.

With seven in ten seniors requiring long-term in care in their lifetimes, planning ahead is more important than ever. Contact Balmos Law to discuss your options and to develop a customized plan for peace of mind.

For more information about the 2019 contribution changes, please see the IRS Bulletin here: https://www.irs.gov/pub/irs-drop/n-18-83.pdf.