One of the most important aspects of retirement planning is saving your money for your future. Of the various ways to do this, investing in a retirement plan is one of the best. So, how much can you save in a retirement plan in 2020? Here’s the breakdown:
The IRS has just released the contribution and benefit limits on pension plans and other retirement items for the 2020 tax year. These changes, published in Notice 2019-59, have increased contribution limits to various retirement planning options which allows participants to save more going forward.
Limits to contributions into a 401(k), 403(b), and most 457 Plans has been increased from $19,000 (2019) to $19,500 (2020), allowing participants of those plans to save more for their retirement.
Catch-up contributions for 401(k), 403(b), and most 457 Plans has increased from $6,000 (2019) to $6,500 for the 2020 tax year.
The limits for those contributing to an Individual Retirement Account (IRA) have remained the same at $6,000.
To see the updated limits and terms on all retirement plan types, review the IRS Notice 2019-59 here.
To learn more about the updated contribution limits for retirement-related planning, contact our team at 877-484-4400.