The IRS announced Thursday that employee contribution limits for defined contribution plans — 401(k), 403(b), most 457 plans and the federal government's Thrift Savings Plan — will be raised to $19,000 next year from the current $18,500.
The 457 plans covered by the increase are deferred compensation plans offered by state and local governments as well as tax-exempt organizations, an IRS news release said.
The news release also said the annual contributions to an individual retirement account would be increased by $500, to $6,000. The additional catch-up contribution limit for people 50 and older will remain at $1,000.
The catch-up contribution limit for employees aged 50 and over who participate in 401(k), 403(b), most 457 plans and the federal government's Thrift Savings Plan remains unchanged at $6,000.
Additional details can be found on the IRS website.
