Retirement
IRS announces higher 2020 retirement plan contribution limits for 401(k)s and more
How much can you save for retirement in 2020? The Treasury Department has announced inflation-adjusted figures for retirement account savings for 2020: 401(k) contribution limits are up; traditional IRA contribution limits stay the same; almost all the other numbers are up.
The amount you can contribute to your 401(k) or similar workplace retirement plan goes up from $19,000 in 2019 to $19,500 in 2020. The 401(k) catch-up contribution limit—if you’re 50 or older in 2020—will be $6,500 for workplace plans, up from $6,000. But the amount you can contribute to an Individual Retirement Account stays the same for 2020: $6,000, with a $1,000 catch-up limit if you’re 50 or older.
So super-savers age 50-plus can sock away $33,000 in these tax-advantaged accounts for 2020. If your employer allows after tax contributions or you’re self-employed, you can save even more. The overall defined contribution plan limit moves up to $57,000, from $56,000.
To read the complete November 6, 2019 post on Forbes.com, please click HERE. Or, contact a Dugan & Lopatka professional to discuss your personal retirement saving needs.