The Internal Revenue Service has announced that the amount of money that people can put into their 401(k) and Individual Retirement Accounts will increase next year. The contribution limit for 401(k), 403(b), most 457 plans, and the federal Thrift Savings Plan will now be limited to $22,500, which is a $2,000 increase.
The catch-up contribution limit for workers at least 50 years old who participate in such plans has been upped from $6,500 to $7,500. This means that those employees may contribute up to $30,000 beginning next year. The catch-up contribution limit for workers 50 and older taking part in SIMPLE plans has been increased to $3,500 from $3,000.
More details can be found at the IRS’s website.