Higher Retirement Contribution Limits Announced for 2019

You can now sock away more money for retirement in 2019 than before! The IRS has just announced an increase in 2019 retirement contribution limits. This is good news as it allows you to grow your nest egg more.

The 2019 contribution limit for employees participating in a 401(k), 403(b), most 401(k), 403(b), most 457 plans, and the Thrift Savings Plan have increased to $19,000. Previously, the limit was $18,500. The catchup limit for savers 50 and older is an additional $6,000.

In addition, the contribution limits for IRAs increased to $6,000. This limited have remained at $5,500 since 2013. The catchup limit for those 50 and older remains at $1,000.

Increased contribution limits are important because they adjust for cost of living changes. The cost of everything from a loaf of bread to new shoes will go up over time. In the same way, over time, your retirement contributions should increase too. This allows you to keep up with changes in cost of living.

Even if you can’t “max out” your retirement contributions (most don’t), even saving a little extra can help. Over time, the extra money you save will increase, leaving you more comfortable in your retirement years.