Retirement savers can put an extra $500 aside in their 401(k)s and IRAs as the IRS adjusts for the annual cost-of-living for 2019.
That means those who participate in 401(k), 403(b) and most 457 plans can contribute a total of $19,000 pre-tax in 2019, while the traditional IRA and Roth contribution limit is now $6,000.
Those over 50 can still contribute $1,000 more in their IRAs, for a total of $7,000, while the catch-up contribution limit for those over 50 for 401(k)s, 403(b)s and 457 plans is still $6,000, meaning older workers can contribute a total of $25,000 for 2019. The overall limit—which includes employer contributions and profit sharing—for defined-contribution plans (which include 401(k)s) is now $56,000.
The income phase-out for Roth IRAs is also increasing, to $122,000 to $137,000 for singles and heads of household, and to $193,000 to $203,000 for married couples filing jointly.
You can read more about the changes and tax implications on the IRS’s websites.