The IRS has released an adjusted cost of living amount that impacts the dollar limitations for both pension plans and other retirement items for the 2019 tax year. These changes, published in Notice 2018-83, have increased contribution limits to various retirement planning options which allows participants to save more going forward.
Here is a quick rundown of the updated limits as it applies to 401(k), 403(b), 457, and IRA Plans. Be sure to check out the formal notice from the IRS (here) to see all of the updated limits.
Limits to contributions into a 401(k), 403(b), and most 457 Plans has been increased from $18,500 (2018) to $19,000 (2019), allowing participants of those plans to save more for their retirement.
Catch-up contributions for 401(k), 403(b), and most 457 Plans has remained at $6,000 for the 2019 tax year.
The limits for those contributing to an Individual Retirement Account (IRA) have been increased from $5,500 (2018) to $6,000 (2019).
To learn more about the updated contribution limits for retirement-related planning, contact our team at 877-484-4400.