The IRS recently announced changes to savings plan increases for retirement accounts:
- Most 401(K) and 403(b) plans went from $18,500 to $19,000.
- The catch up plan for people over 50 stayed the same at $6,000.
- IRA contributions increased to $6,000 from $5,500.
- The catch up plan for IRA contributions also stayed the same at $1,000.
The number of Americans that are saving for retirement has increased dramatically in the last ten years, thanks primarily to auto-enrollment initiatives. However, data shows that Americans are still not saving enough, and that supplemental plans that banks can offer can help close the gap.