By Barry Jamieson, CFP®, MA
There is still time to save on your taxes for 2019! For most tax-saving type accounts (not including 401Ks and 403B) you have until April 15 of 2020 to contribute. For those who have extra savings that you would like to invest, consider maxing out your contributions to your HSA, 401K, IRA or Roth (assuming you are under the income limits) according to the chart listed below. If you still have extra savings and you would like to augment the college or special needs savings for a loved one, consider contributing to a 529 account or ABLE account. You won’t save on your federal taxes, but you will receive a deduction off your state income for the amount contributed up to a $4,000 limit.
2019 & 2020 CONTRIBUTION LIMITS/WITH CATCH UP 2019 2020
- IRA & Roth / $6,000 (7,000 age 50+) / $6,000 ($7,000 age 50+)
- 401K/403B / $19,000 ($25,000 age 50+ ) / $19,500 ($26,000 age 50+)
- HSA, Individual / $3,500 ($4, 500 age 55+) / $3,550 ($4,500 age 55+)
- HSA, Family / $7,000 ($8,000 age 55+) / $7,100 ($8,100 age 55+)