401K Contribution Limits for 2020

Wednesday, the IRS released Notice 2019-59 which provides cost of living adjustments for retirement plans for 2020. 
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401(k), 403(b), most 457 plans, and Thrift Savings Plan contribution limits have increased $500 to $19,500. The annual catch-up limitation for employees over age also increases $500, to $6,500.
 

The annual limitation for SIMPLE retirement accounts also increases $500, up to $13,500.

Phase out ranges for contributing to IRAs have increased $1,000:

• For single taxpayers covered by a workplace retirement plan the phase-out range is $65,000 to $75,000
• For married couples filing jointly where the IRA contributor is covered by a workplace retirement plan the phase-out range is $104,000 to $124,000

The income phase-out range for Roth IRAs  has also gone up:

• For single taxpayers and head of household the phase-out range is $124,000 to $139,000, up $2,000.
• For married couples filing jointly the phase-out range is $196,000 to $206,000, up $3,000.

Maximum contribution limits to traditional and Roth IRAs at $6,000 with catch-up contributions for individuals over age 50 of $1,000.
For more information see Notice 2019-59 or IRS News Release 2019-179 or check out our fact page.