Retirement Limits Raised

I am so excited that the federal government has decided to raise the limits on what you are allowed to contribute to your retirement accounts. You know from my previous article that I like to talk mostly about the Thrift Savings Plan of course and the Roth IRA, so that is what I will focus on here.

So how much can you contribute now?

With the Thrift Savings Plan as of January first you will now be able to contribute $19,000 a year, up from $18,500. That means if you choose to contribute a dollar amount instead of a percentage from check you will now contribute $731 a pay period up from $712. That is only a $19 difference and you can start your extra contribution on Pay Period 26 for 2018 since we get paid for pay period 26 in 2019.

What other limits are being raised?

Woo Hoo! The Roth IRA and Traditional IRA limits are also being raised from $5,500 to $6,000 a year for those under the age of 50 and $7,000 a year if you are 50 and older. It seems like it has been so long since we have had an increase, that this has me so excited. So now instead of contributing $458.33 per month now you can contribute $500 a month, which is a difference of only $41.67. Now I know I will be making these changes and I wonder how many of you will join me.

Ms. Smart