IRA & 401(k) 2019 Update

*$500 contribution limit increase for both 401(K) and IRAs.

Income Cutoffs for 2019
1. Traditional IRA: 401(k) participants can claim a tax deduction for a 2019 IRA contribution if they earn up to $74,000 individually or $123,00 jointly. A $1,000 and $2,000 increase respectively.
2. Roth IRA: Workers who earn up to $137,000 individually and $203,000 jointly remain eligible to contribute to a Roth IRA, a $2,000 and $4,000 increase.

This is the first contribution limit increase since 2013 for IRAs and provides significant benefits. As an example, if we assume 8% returns, the updated $500 limit in retirement savings over 35 years is $100,000. Tax-deferred investment accounts such as IRAs and 401(k)s are powerful tools, that offer greater comfort in life and retirement. Click on more O&G content to learn the ins and outs. 

Important Note: ​

You can begin contributing to your IRA under 2019 limits on January 1, 2019. However, if you still haven't met your 2018 limit, you have until April 15, 2019, to max out.
Send us an email at [email protected] if you have any questions or call at +86 131 2206 9291 to schedule an informative meeting. 

Read also: 
1. Individual Retirement Accounts: What Americans Need to Know
2. How to Manage Your 401(k) While Abroad
3. Tips for Managing Your RMB in China 
4. China's New Tax Reform: What We've Learned.