IRS raises 2019 401(k) contribution limit to $19,000
The word "Taxes" is seen on the facade of the Internal Revenue Service (IRS) headquarters in Washington, D.C., U.S., on Friday, Oct. 20, 2017. President Donald Trump's top legislative priority took a major step forward as the Senate narrowly approved a budget vehicle for tax cuts -- but sharp divides over an array of non-binding amendments revealed the towering challenge he faces from here. Photographer: Andrew Harrer/Bloomberg
A cost-of-living adjustment also raises IRA contribution limit to $6,000.
The Internal Revenue Service announced Thursday cost-of-living adjustments to limits on contributions to retirement plans for 2019.
The agency’s limit on annual employee contributions to 401(k)s, 403(b)s, most 457 plans and the federal government’s Thrift Savings Plan will rise to $19,000 next year, up from $18,500 in 2018.
Its limit on contributions to individual retirement accounts rose to $6,000 from $5,500, the limit that has been in place since 2013.
The limit on catch-up contributions to IRAs for those 50 and older is unchanged at $1,000 annually, as is the cap on catch-up contributions for those 50 and older to 401(k) and other employee plans, at $6,000.
The agency also increased the income ranges at which individuals are eligible to make deductible contributions to IRAs, to contribute to Roth IRAs and to claim the savers’ credit.
(More: Using an IRA to fund an HSA)
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