IRS Increases Contribution Limits for Retirement Accounts

The IRS has increased the contribution limits for various retirement accounts for 2019.The Internal Revenue Service says that the contribution limit for employees who participate in a 401(k), 403(b) and most 457 plans, as well as the federal government's Thrift Savings Plan, is increased from $18,500 to $19,000.The catch-up contribution limit, which is a higher threshold for employees 50 years or older using these accounts, remains unchanged at $6,000. The changes were among several inflation adjustments announced by the IRS.The limit on annual contributions to an IRA, which hadn't increased since 2013, were raised to $6,000 from $5,500.A 401(k) plan is one of the most common employer-sponsored retirement accounts. 403(b) plans is another type of retirement plan, used for public school and nonprofit employees. And 457 plans are another retirement account, more common for government employees.