IRS Releases 2020 Inflation Updates for 401(k), IRA Contributions, Nov. 14, 2019

The IRS released updated contribution limits for 401(k), 457, 403(b) plans, as well as IRAs and SIMPLE IRAs. While the general IRA contribution limit will remain at $6,000 (and the catch-up limit will remain at $1,000), many other contribution limits increased. Participants in 401(k), 457 and 403(b) plans will be permitted to contribute $19,500 in pre-tax dollars in 2020 (up from $19,000 in 2019). Catch up contribution limits for participants aged 50 and older will also increase from $6,000 to $6,500 in 2020. SIMPLE IRA contribution limits also increased to $13,500 for 2020 (up from $13,000 in 2019). Income phase-out ranges for deductible IRA contributions and direct Roth IRA contributions also changed for 2020. For more information on these changes, visit Tax Facts Online.