US. Great News From The IRS For Retirement Savers
The Internal Revenue Service (IRS) gave retirement savers an early holiday gift this year in the form of higher contribution limits for 2020. According to its November 6th announcement, workplace retirement plan contribution limits would be increased in 2020.
Likewise, the income limits for Traditional IRAs and ROTH IRAs will also rise in 2020. Larger contributions to retirement accounts will allow you to further minimize your current tax bills. Additionally, higher retirement account contribution limits can be great for those who are playing catch up for retirement and/or who are making good incomes.
2020 Contribution Limits for Workplace Retirement Plans The employee contribution limit will be increasing from $19,000 to $19,500 for the following types of retirement accounts in 2020:
- 401(k) plans
- 403(b) plans
- Most 457 plans
- Thrift Savings Plans
- Profit-Sharing Plans
- Cash Balance Pension Plans
For those of you with a SIMPLE IRA at work, the contribution limit will be increasing from $13,000 to $13,500. If your employer offers a SIMPLE IRA it may be time to ask them to upgrade your retirement plan to a 401(k), or something similar, that offers larger contribution limits.
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