The IRS raises 401(k) contribution limits for 2020

The change raises the contribution limit by $500, from $19,000 to $19,500. This change affects employees who participate in 401(k), 403(b), most 457 plans, and federal Thrift Savings Plans. The “catch-up” contribution limit for employees 50 years of age and older has also increased from $6,000 to $6,500.

For details about these changes, and changes to other plans like defined benefit plans, may be found at the IRS website, here.

www.irs.gov/newsroom/401k-contribution-limit-increases-to-19500-for-2020-catch-up-limit-rises-to-6500]