Towards the end of each year, the Internal Revenue Service (IRS) releases adjustments for retirement plan policies for the upcoming year.
In November, the changes for 2020 were released. Highlights include:
- A cost of living increase for the contribution limits on employer retirement plans, 401(k)s, 403(b)s, 457 plans and TSPs, from $19,000 to $19,500.
- Catch-up contributions for these plans for people over 50 will increase from $6,000 to $6,500.
- There will be no cost of living increase for IRA contributions, or for IRA catch-up contributions.
The IRS announced other adjustments for 2020 that can be found by following this link to the IRS news release.