2020 IRS Contribution Limits

by | Jan 6, 2020 | Financial Planning, News, Wealth Management | 0 comments

The IRS just increased the annual contribution limits on IRAs, 401(k)s, and other widely used retirement plan accounts for 2020. Here’s a quick look at the changes.

  • Traditional and Roth IRAs. You can put up to $6,000 in a Traditional or Roth IRA. The limit is $7,000 if you will be 50 or older at any time in 2020.
  • 401(k), 403(b) and 457 plans. Annual contribution limits for these plans also get a $500 boost to $19,500. The limit is $26,000 if you will be 50 or older at any time in 2020.
  • Solo 401(k) and SEP IRAs. Are you self-employed, or do you own a small business? The limit on your solo 401(k) or a SEP IRA, which allows you to make both an employer and employee contribution increases to $57,000.
  • SIMPLE IRAs. This contribution limit increases to $13,500, or $16,500 if you are 50 or older in 2020.
  • Health Savings Accounts. HSA limits (which may be used to save for retirement medical expenses) increase to $3,550 for individuals with single medical coverage and $7,100 for those covered under qualifying family plans. If you are 55 or older in 2020, those limits are $1,000 higher.

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