IRS Increases Retirement Plan Contribution Levels for 2020

If you’re saving for retirement or planning to start in the new year, the IRS announced increases in contribution limits to qualified retirement plans for 2020. Employees participating in 401 (k) plans may contribute $19,500 in 2020, an increase of $500 over this year. The IRS applies this increase to 403(b) plans, most 457 plans, and the federal government’s Thrift Savings Plan. Catch up contributions for employees aged 50 or older and the limit on annual benefits for participants under a defined benefit plan also increased. Find the details about the IRS’s annual adjustment for cost-of-living increases here.