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Good news for hard-working individuals with retirement plans: those plans are going to work a little harder for you this year. The IRS has increased 2019 contribution limits for some types of retirement plans so you can save more and potentially earn more in returns, depending on how you invest.

  • For workplace plans such as 401k, 403b and most 457 plans, employees can contribute up to $19,000 a year in pretax funds (up from $18,500 in 2018).
  • The annual contribution limit for Traditional and Roth IRAs—which had not increased since 2013—is now $6,000 (up from $5,500 in 2018).
  • Catch-up contribution limits for employees who are 50+ years old remain the same as in 2018: $6,000 for workplace plans and $1,000 to an IRA.

In addition, income ranges that determine one’s eligibility to make deductible contributions to traditional IRAs, to contribute to Roth IRAs, and to claim the saver’s credit on a tax return have also increased for 2019—so more people will be able to fund those retirement plans and claim the tax credit. Much depends on your income level, filing status, marital status, and whether you have a workplace retirement plan. You can read all the stipulations here or consult with your trusted tax advisor.

Here’s one thing that hasn’t changed about retirement plans—the benefits to savvy investors who save for retirement with a self-directed IRA.

Take advantage of higher contribution limits and a broader range of investment options

While the tax advantages and contribution limits for self-directed IRAs are the same as for regular retirement plans (of the same type), the investment options in self-direction are vast and varied.

Self-directed retirement plans enable investors to include a broad array of nontraditional investments within their plans, which gives them the potential to maximize the return on their annual contributions through investments in real estate, precious metals, private equity, unsecured or secured loans, and other non-publicly traded assets. If these are types of assets you already know and understand, and want to take advantage of your investment knowledge and those higher contribution limits, your time is now.

Plus, when you open a self-directed IRA at Next Generation, you can also lean on our team of professionals who provide personalized service for a seamless transaction experience from start to finish, while also educating our clients to remain in compliance with IRS guidelines.

Next Generation also helps clients increase their understanding of self-directed retirement plans with educational resources, such as webinars and whitepapers. We invite you to check out a webinar or sign up for whitepaper access to read more about this retirement savings strategy.

Have a question about contribution limits to your self-directed IRA or about the alternative assets allowed in these plans? Email NewAccounts@NextGenerationTrust.com or call 1.888.857.8058. We’re here to help!