IRS Announces Good News For Savers

The Internal Revenue Service has announced an increase in the amount of money you can to contribute to your retirement accounts for 2019.

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

The catch-up contribution limit, which is a higher threshold for employees 50 years or older using these accounts, remains unchanged at $6,000. The changes were among several inflation adjustments announced by the Internal Revenue Service on Thursday.

The limit on annual contributions to an Individual Retirement Account, which hadn’t increased since 2013, was raised to $6,000 from $5,500.

A 401(k) plan is one of the most common employer-sponsored retirement accounts. A 403(b) plan is another type of retirement plan, used for public school and nonprofit employees. Moreover, 457 plans are another retirement account, more common for government employees.

Disclaimer: This blog is for information purposes only and is not intended to provide investing, accounting, tax or legal advice and should not be relied upon.