The IRS just released some new inflation adjusted numbers and one major change is that farmers can put more into an IRA or 401(k) plan.
In 2019, a farmer can put $6,000 into and IRA plus another $1,000 if age 50 or over. Married couples who are each 50 or older, can now set aside $14,000 into IRAs.
Farmers who participate in a 401(k) plan can now defer $19,000 from their salary plus if age 50 or over additional $6,000 for a total of $25,000. The maximum amount that can be contributed per participant including the owner increases from $55,000 to $56,000.
Many farmers view their farm land as their retirement plan, but most should certainly consider either contributing to a regular or Roth IRA each year. This can help make it much easier to transition the farm operation to the successors and make your retirement years much better.