How much money can I put into my IRA or employer-sponsored retirement plan?
IRAs and employer-sponsored retirement plans are subject to annual contribution limits set by the federal government. The limits are adjusted periodically to compensate for inflation and increases in the cost of living.
If you are age 50 or older, you can also make a $1,000 annual “catch-up” contribution.
Employer-sponsored retirement plans
Employer-sponsored retirement plans such as 401(k)s and 403(b)s have
You can contribute up to $13,000 to a SIMPLE IRA or SIMPLE 401(k) plan in 2019, and an extra $3,000 catch-up contribution if you are age 50 or older (unchanged from 2018).
Distributions from traditional IRAs and most employer-sponsored retirement plans are taxed as ordinary income, except for any after-tax contributions you’ve made, and the taxable portion may be subject to 10% federal income tax penalty if taken prior to reaching age 59½ (unless an exception applies). If you participate in both a traditional IRA and an employer-sponsored plan, your IRA contributions may or may not be tax deductible, depending on your adjusted gross income.