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|
|SEP/Solo 401(k) Plans||$55,000||$56,000|
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.