Retirement Plan Contribution Limits Will Increase in 2019

Annual cost of living adjustments will cause retirement plan contribution limits to increase in 2019, according to a recent announcement by the Internal Revenue Service:

The contribution limit for employees who participate in 401(k), 403(b), most 457 plans, and the federal government’s Thrift Savings Plan is increased from $18,500 to $19,000.

The limit on annual contributions to an IRA, which last increased in 2013, is increased from $5,500 to $6,000. The additional catch-up contribution limit for individuals aged 50 and over is not subject to an annual cost-of-living adjustment and remains $1,000.

Click here to view the full IRS update.