You Can Contribute More to Your 401(k) and IRA in 2019

Blog 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.