IRS Releases 2020 Savings Limits
The IRS recently released their limits on savings for 2020. Participants in 401(k), 403(b), most 457 plans and the federal government’s Thrift Savings Plan will be able to save up to $19,500/year in 2020. That is up from $19,000 for 2019. The catch-up contribution limit for employees 50 and older who participate in these plans will also increase. For 2020 it will be $6,500/year. That is up from $6,000 for 2019. So the maximum contribution for 2020, for those 50 and older will be $26,000/year.
The IRS has kept the limit on annual contributions to an IRA at $6,000. The additional catch-up contribution limit also remains at $1,000.
For Roth IRAs, the income phase-out range for 2020 is $124,000 to $139,000 for singles and heads of household (up from $122,000 to $137,000 in 2019); and $196,000 to $206,000 for married couples filing jointly (up from $193,000 to $203,000 in 2019).