How much can you save for retirement in 2020?
The Treasury Department has announced inflation-adjusted figures for retirement account savings for 2020:
- 401(k) contribution limits are up: The amount you can contribute to your 401(k) or similar workplace retirement plan goes up from $19,000 in 2019 to $19,500 in 2020.
- 401(k) catch-up contribution limits are up: if you’re 50 or older in 2020—will be $6,500 for workplace plans, up from $6,000.
- Traditional IRA contribution limits stay the same: $6,000, with a $1,000 catch-up limit if you’re 50 or older.
This is a good time of year to increase your contributions. If you have any questions or would like to discuss this further, please give my office a call.