Limits for 401(k), IRA and Other Retirement Plans to Rise in 2019

Photo by pinkomelet / Shutterstock.com

Good news for retirement savers: You can sock away more money in multiple types of tax-sheltered retirement plans next year.

The IRS announced Thursday that the contribution limits for both workplace retirement plans and individual retirement accounts (IRAs) will increase in 2019.

The base contribution limit for the following four types of workplace retirement accounts will increase next year from $18,500 to $19,000:

  • 401(k)
  • 403(b)
  • Most 457 plans
  • Thrift Savings Plan

In addition, the base contribution limit for IRAs will increase for the first time since 2013, rising from $5,500 to $6,000.

All of these limits apply to savers who are 49 or younger.

Today’s news follows a similar announcement about rising limits for health savings accounts (HSAs), as we detailed in “Contribution Limits for This Tax-Free Account to Rise Again.”

Catch-up contributions remain unchanged

Folks who are 50 or older can save more money in retirement accounts by also making so-called catch-up contributions. The limits for these contributions will not increase next year, however.

The catch-up contribution limits for the following workplace retirement accounts will remain $6,000, meaning savers age 50 or older can stash a total of $25,000 in these types of accounts in 2019:

  • 401(k)
  • 403(b)
  • Most 457 plans
  • Thrift Savings Plan

The catch-up contribution limit for IRAs will remain $1,000. It is not subject to an annual cost-of-living adjustment (COLA), according to the IRS. This means savers age 50 or older can stash a total of $7,000 in IRAs next year.

Some income limits to increase

Income limits determine who is eligible to make tax-deductible contributions to certain types of tax-sheltered accounts.

According to the IRS, the income ranges for determining eligibility to make deductible contributions to the following accounts will increase in 2019:

  • Traditional IRAs
  • Roth IRAs

The income range for claiming the saver’s credit on your federal income taxes will also increase.

For more information, check out the IRS website.

Why contribution limits increase

Under federal law, the U.S. Department of the Treasury — which includes the IRS — must evaluate annually whether to make cost-of-living adjustments to retirement plan contribution limits. A rising cost of living typically results in higher contribution limits.

To learn about the COLA that will affect your Social Security retirement benefits, check out “2019 Social Security Bump Is Biggest in 7 Years for Retirees.”

How do you feel about the retirement plan contribution limits for 2019? Sound off below or over on our Facebook page.

Disclosure: The information you read here is always objective. However, we sometimes receive compensation when you click links within our stories.

Read Next
8 Key Steps to Planning for Retirement as a Couple
8 Key Steps to Planning for Retirement as a Couple

Ready for retirement? Not so fast. You might be surprised at some of the issues that come up for couples when they plan.

17 Surprising Things You Can Sell for Extra Money
17 Surprising Things You Can Sell for Extra Money

From your closet to the beach, the trash you find may be someone else’s treasure.

9 Houseplants That Remove Toxins From Your Indoor Air
9 Houseplants That Remove Toxins From Your Indoor Air

These plants may also do everything from reduce the amount of dust in your home to improve your productivity.

How to Achieve Your Financial Goals in 2020
How to Achieve Your Financial Goals in 2020

New year, new you. Get your finances on track with the help of these tools for investing, saving, budgeting and earning.

10 Things That Really Are Free on Amazon
10 Things That Really Are Free on Amazon

These freebies are available to anyone — no Prime membership necessary.

View this page without ads

Help us produce more money-saving articles and videos by subscribing to a membership.

Get Started

Most Popular
10 Things Frugal People Never Buy
10 Things Frugal People Never Buy

If you’re a true tightwad, the mere thought of spending money on these items gives you the willies.

10 Useless Purchases You Need to Stop Making
10 Useless Purchases You Need to Stop Making

You might as well flush your money down the loo if you spend it on these things.

7 Social Security Benefits You May Be Overlooking
7 Social Security Benefits You May Be Overlooking

There’s more to Social Security than retirement benefits.

7 Social Security Rules Everyone Should Know by Now
7 Social Security Rules Everyone Should Know by Now

Confusion over Social Security is a shame, considering how many of us will need this money badly.

3 Ways to Get Microsoft Office for Free
3 Ways to Get Microsoft Office for Free

With a little ingenuity, you can cut Office costs to zero.

The 6 Best Investing Apps for Beginners
The 6 Best Investing Apps for Beginners

If you’re looking to ease into investing in the coronavirus economy with just a little money, check out these easy-to-use tools.

14 Things You Should Stop Buying in 2021
14 Things You Should Stop Buying in 2021

These convenient household products come with hidden costs that you might not have considered.

8 Things You Should Replace to Improve Your Life Today
8 Things You Should Replace to Improve Your Life Today

Being frugal isn’t smart if you put off replacing these items.

10 Deep Discounts Available on Amazon This Friday
10 Deep Discounts Available on Amazon This Friday

These items are all steeply discounted — but the deals won’t last long.

Is Writing a Check Still Safe?
Is Writing a Check Still Safe?

Every time you pay by check, you hand your bank account numbers to a stranger.

7 Kirkland Signature Items to Avoid at Costco
7 Kirkland Signature Items to Avoid at Costco

Even if it seems you save a bundle buying Costco’s Kirkland Signature brand products, they may not be the bargain they appear to be.

9 Things You Should Never Leave in a Car
9 Things You Should Never Leave in a Car

Thinking of leaving these possessions in a car? Prepare for unexpected consequences.

9 Mistakes People Make When Cleaning With Vinegar
9 Mistakes People Make When Cleaning With Vinegar

Cleaning with vinegar can save you a lot of money, but using it like this can cost you.

13 Amazon Purchases We Are Loving Right Now
13 Amazon Purchases We Are Loving Right Now

These practical products make everyday life a little easier.

7 Income Tax Breaks That Retirees Often Overlook
7 Income Tax Breaks That Retirees Often Overlook

Did you realize all these tax credits and deductions exist — or that they apply to retirees?

10 Cars You Are Most Likely to Keep for 15 Years
10 Cars You Are Most Likely to Keep for 15 Years

The cars that owners hold onto the longest have one thing in common, a new study shows.

10 Things Successful Retirees Do Differently
10 Things Successful Retirees Do Differently

These habits and characteristics can help put you on the track to success.

7 Costly Health Problems That Strike After Age 50
7 Costly Health Problems That Strike After Age 50

As we age, our bodies wear down. Here is how to cut costs associated with some common ailments.

29 Purchases That Can Save You Money Every Day
29 Purchases That Can Save You Money Every Day

Sometimes, you’ve got to spend to save.

View More Articles

View this page without ads

Help us produce more money-saving articles and videos by subscribing to a membership.

Get Started

Add a Comment

Our Policy: We welcome relevant and respectful comments in order to foster healthy and informative discussions. All other comments may be removed. Comments with links are automatically held for moderation.