More Savings!
If you missed the announcement of higher retirement plan limits for 2020, here’s another look at some of them.

Work Plans The annual limit for defined benefit plans rose from $225,000 to $230,000, while the combined (employer/employee) annual limit for 401(k), 403(b) and most 457 plans rose $1,000 to $57,000. The latter limit includes a $500 increase to $19,500 for employee contributions, and catch-up contributions, which also rose from $6,000 to $6,500 for those at least age 50. Limits for top-heavy retirement plans and employee stock ownership plans also increased.

IRAs The income limit to qualify for tax-deductible IRAs also increased for 2020. A couple with neither spouse participating in a workplace plan qualifies for a full deduction up to $196,000 of joint annual income, up $3,000. Other tax filers also saw increases in income limits. Contribution limits stay at $6,000 annually (plus another $1,000 catch-up).

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