The Treasury Department announced that retirement plan contribution limits are increasing in 2019 due to inflation. Get ready to save.

The maximum pre-tax contribution limit for an Individual Retirement Account (IRA) is increasing for the first time since 2013: from $5,500 to $6,000. The extra $500 annual investment will compound over time, making this increase notably significant to workers of the younger set, who could see that $500 annual investment grow to $100,000 over a 35-year period.

Contribution limits for workplace retirement plans, such as 401(k)s, are increasing in 2019 from $18,500 to $19,000. That limit will also pertain to participants of the Federal Government’s Thrift Savings Plan (TSP), 403(b), and most 457 plans, which means workers will have the opportunity to defer paying income tax on approximately $42 more per month.

Catch-up contribution limits remain the same in 2019 for those over 49 years old: $6,000 for workplace plans and $1,000 for IRAs, which means that investors 50 years old and over have the potential to stash away $32,000 in the coming year.

Also increasing in 2019 is the maximum amount of annual compensation that can be considered when deciding employer and employee contributions. This amount is jumping from $275,000 to $280,000. However, earning more than $120,000 in 2018 may qualify you as a highly compensated employee, which could possibly result in additional limits on contributions in 2019. Likewise, earning more than $125,000 in 2019 may qualify you as highly compensated for 2020 contribution limits.