Retirement plan limits change for 2020

As part of your 2020 planning, now is the time to review funding your retirement accounts. By establishing your contribution goals at the beginning of each year, the financial impact of saving for your future should be more manageable. Here are annual contribution limits:

Retirement Plans 2019 2020 Change Age 50 or older

catch up

IRA: Traditional $6,000 $6,000 none add: $1,000

IRA: Roth $6,000 $6,000 none add: $1,000

IRA: SIMPLE $13,000 $13,500 +$500 add: $3,000

401(k), 403(b), 457 plans $19,000 $19,500 +$500 add: $6,500

Take action

If you have not already done so, please consider:

• Reviewing and adjusting your periodic contributions to your retirement savings accounts to take full advantage of the tax advantaged limits

• Setting up new accounts for a spouse or dependent(s)

• Using this time to review the status of your retirement plan

• Reviewing contributions to other tax-advantaged plans including flexible spending accounts and health savings accounts

Barry J. Pierce is a certified public accountant in Kaufman.

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