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This is great news that the IRS has decided to allow the contribution limit for individual retirement accounts to increase to $6,000 for the year 2019. In past year this contribution limit has been set at $5,500. There for they increased it by $500. This extra five hundred dollars may not seem like a lot however after multiple years and with compounding interest this little bit extra can add up to a lot of money. For example if someone in their mid twenties started maxing out there individual retirement in 2019 with the limit of six thousand by their mid sixties they would have approximately $240,000. But wait how will you be able to retire with only that? Keep in mind we in this example we did not calculate in the compounding interest and the market ups and downs. Now if someone were to contribute the limit of six thousand for a every year for a 40year time. After compounding interest assuming a 9% return on investment that person would have a approximately 2million dollars. Sure the markets may go up and they may fall hard but even if you end up with just a million that is more that before. Also if someone is so worried about the markets falling that they do not contribute at all then they will not have any for retirement at all. How foolish is that to not be prepared?
Who is eligible to contribute to an individual retirement account? This simple answer is anyone who has earned income.
Keep in mind that individual retirement accounts are not the same as employer sponsored account. There are many different employer sponsored retirement accounts. If your employer offers one really take a look into it and consider this accounts. They are great if the employer is matching. It would be foolish not to take this matching contribution for this is free money. Also take a look if you can as to what type of accounts the employer sponsored plan is going. A lot of times they automatically just put the money into a simple money market account. This money market account are alright to hold money temporary however for the long term they do not produce a lot of return.

Here is the formula to calculate the future value of a set amount: FV=PV(1+i)^n

Here is a compound interest to play with:
 http://moneychimp.com/calculator/compound_interest_calculator.htm

Also here is the link to the IRS site that states about contribution limits.

https://www.irs.gov/retirement-plans/plan-participant-employee/retirement-topics-ira-contribution-limits