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.