On Wednesday, the Internal Revenue Service announced cost-of-living adjustments for 2020 to its limits on contributions to retirement plans.
The agency’s limit on annual employee contributions to 401(k)s, 403(b)s, most 457 plans and the federal government’s Thrift Savings Plan will rise to $19,500 next year, up from $19,000 in 2019 and $18,500 in 2018.
Its limit on contributions to individual retirement accounts is unchanged at $6,000.
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[More: 5 reasons to keep some funds in traditional IRAs, even for Roth IRA lovers]
The limit on catch-up contributions to IRAs for those 50 and older is unchanged at $1,000 annually, but the cap on catch-up contributions for those 50 and older to 401(k)s and other employee plans will rise to $6,500 next year from $6,000 in 2019.
The agency also increased the income ranges at which individuals are eligible to make deductible contributions to IRAs, to contribute to Roth IRAs and to claim the savers’ credit.
[More: How taxpayers hurt themselves with nondeductible IRA contributions]
