The Internal Revenue Service announced cost of living adjustments affecting dollar limitations for pension plans and other retirement-related items for tax year 2019. The highlights include:
- The contribution limit for employees who participate in the federal government’s Thrift Savings Plan, 401(k), 403(b), and most 457 plans increased from $18,500 to $19,000.
- If you are 50 and over and participate in 401(k), 403(b), most 457 plans and the Thrift Savings Plan, your catch-up contribution limit remains unchanged at $6,000 for 2018.
With the end of the year quickly approaching, be sure to take advantage of catch-up contributions. Here are a few tips to keep in mind:
- You can make your catch-up contribution at any time, but it has to be made by the end of the calendar year. You will have to create a new catch-up contribution election each year.
- To get started making TSP catch check out the Catch-Up Contributions fact sheet on TSP.gov or watch the Catch-Up Contributions video on YouTube.To get started making TSP catch check out the Catch-Up Contributions fact sheet on TSP.gov or watch the Catch-Up Contributions video on YouTube.
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