Carey Ann Cyr
Area Sales Manager | NMLS #160055
Branch NMLS #1093019
Posted On November 08, 2018
Workers will be able to contribute more to their retirement accounts in 2019.
The limit increased to $19,000, up $500 from $18,500 in 2018, for 401(k) plans, as well as 403(b) plans, most 457 plans and the federal government’s Thrift Savings Plan, the Internal Revenue Service said Thursday. The catch-up contribution limit for employees 50 and older remains unchanged at $6,000, which means an employee 50 or older can put as much as $25,000 ($19,000+$6,000) in their 401(k) plan. These accounts also allow employer matches.
Though $19,000 is how much of an employee’s pretax earnings can be deferred, the overall limit for defined-contribution plans (such as 401(k) plans) increased to $56,000, up from $55,000, in 2019. This limit includes employee and employer contributions and profit-sharing contributions.
Read more at MarketWatch.com.