November 13, 2019

Defined contribution retirement plan maximum contribution limit increases for 2020

The IRS has announced cost-of-living adjustments to retirement plan and IRA contribution limits, with increases for the third year in a row. Catch-up contributions for savers age 50 and over will also increase this year, from $6,000 to $6,500.

2019 Limits 2020 Limits
401(k), 403(b), and 457 plans $19,000 $19,500
Age 50+ catch-up contribution (additional to the standard contribution) $6,000 $6,500
 
Traditional and Roth IRAs $6,000 $6,500
Age 50+ catch-up contribution (additional to the standard contribution) $1,000 $1,000

 

To view the IRS notice of contribution limit changes, visit https://www.irs.gov/pub/irs-drop/n-18-83.pdf