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IRS boosts contribution limits for retirement accounts in 2019

CNBC logo CNBC 11/1/2018

If saving more is one of your resolutions for 2019, there's good news: You can put away more money toward your retirement accounts next year.

The IRS on Thursday released new contribution limits for employees who participate in 401(k) plans in 2019. The new number for those using pre-tax funds will be $19,000 in 2019, up from $18,500 in 2018.

That limit will also applies to 403(b), Thrift Savings and most 457 plans.

The average 401(k) balance is $104,000, according to Fidelity

In addition, the limits for individual retirement accounts have also been bumped up for the first time since 2013.

In 2019, you will be able to save up to $6,000 in your IRA, up from $5,500 in 2018.

If you are 50 and over and looking to make up for lost time, catch-up contribution limits will remain the same for 2019. For 401(k) and other employee plans, you can put in an additional $6,000 in 2019. For IRAs, you can put in an additional $1,000.

Related video: Here's what you need to do now to save for retirement

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