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IRS Limits & Tax Reference Guides

The IRS announced this and other changes in Notice 2019-59 (PDF), posted on IRS.gov. This guidance provides cost‑of‑living adjustments affecting dollar limitations for pension plans and other retirement-related items for tax year 2020.

Highlights of changes for 2020:

• The contribution limit for employees who participate in 401(k), 403(b), most 457 plans, increased from $19,000 to $19,500.

• The catch-up contribution limit for employees aged 50 and over who participate in these plans is increased from $6,000 to $6,500.

• The limitation regarding SIMPLE retirement accounts for 2020 is increased to $13,500, up from $13,000 for 2019.