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.
Questions About Your Federal Benefits?
If you have questions about maximizing your federal benefits, schedule your free retirement analysis today. Each member of our expert staff has extensive background working with the federal government, federal employees, and retirement planning. GPIS’ top priority is making sure each federal employee retires with the peace of mind that comes from knowing they made the right decisions to plan ahead and maximize their retirement benefits. We’re here to help!