The IRS announced cost of living adjustments for qualified retirement plans for tax year 2019. Some of the key updates are as follows:
● The 401(k) contribution limit increases to $19,000 in 2019 (up from $18,500 in 2018).
● The IRA contribution limit, which last increased in 2013, increases from $5,500 to $6,000 in 2019.
● The contribution limit for SIMPLE retirement accounts is increased from $12,500 to $13,000.
● The contribution limit for a Defined Contribution Plan (such as a 401(k) plan with employer match) increases to $56,000 in 2019 (up from $55,000 in 2018).
● The additional catch-up contribution limits for individuals aged 50 and over remains unchanged in 2019 ($6,000 for 401(k) plans, $1,000 for IRAs, and $3,000 for SIMPLE plans).
