The IRS has released the 2020 Contribution Limits for 401(k) and other retirement plans. IRS Notice 2019-59 was issued on November 6, 2019. Participants of 401(k) and 403(b) Plans will be able to defer up to $19,500, and, if age 50 or older, an additional $6,500 in catch-up contributions.
For 401(k) Plans which also have Profit Sharing provisions, the maximum allocation for each participant will be $57,000. This includes 401(k) deferral, matching and forfeitures allocated. The catch-up contribution is over and above for a maximum of $63,500 for those aged 50 or older.
Participants in a SIMPLE IRA will be able to contribute up to $13,500, and, if age 50 or older, an additional $3,000 in catch-up contributions.
IRA contribution limits will be unchanged. The maximum deductible IRA contribution will be $6,000, and, if age 50 or older, an additional $1,000 in catch-up contributions.
The Social Security Taxable Wage Base will increase to $137,700.