IRS boosts contribution limits for retirement accounts
The Internal Revenue Service has increased the contribution limits for various retirement accounts for 2019.
The IRS said Thursday that 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 being increased to $19,000 from $18,500.
The catch-up contribution limit, which is a higher threshold for employees 50 or older using these accounts, remains unchanged at $6,000. The changes were among several inflation adjustments the IRS announced Thursday.
The limit on annual contributions to an IRA, 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. A 457 plan is another retirement account, more common for government employees.
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