retirement-contribution-limits-will-rise-in-2019

Retirement contribution limits will rise in 2019

Planning young: a retirement roadmap

Good news retirement savers: The Internal Revenue Service announced cost of living increases to the contribution limits for retirement-related plans in 2019.

Annual contribution limits to 401(k)s will increase to $19,000 from $18,500.

And the annual contribution to an IRA, last increased in 2013, rises to $6,000 from $5,500.

“This is another win for investors and savers,” says Stephanie Bacak, a financial planner at Capstone Global Advisors. “For so long there were really no cost of living increases in the IRA so it is a great opportunity for so many to be more prepared for retirement.”

Catch-up contributions, available to those age 50 and over, will remain unchanged at $6,000 for 401(k)s and $1,000 for IRAs.

In addition to 401(k)s, limits for 403(b)s, most 457 plans and the federal government’s Thrift Savings Plan will also increase to $19,000.

Also rising next year are the income ranges that determine elig

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