2020 Retirement Plan Limits

retirement planning

 Matthew Baisden By: Matthew Baisden

The IRS announced the new limits for 2020 retirement savings. If you are a participant in a 401(k), or other similar employer sponsored plan, how much you can save into the plan is going up next year. If you are over age 50 and eligible for the catch-up contribution, that amount increased as well.

If you are a business owner or on a retirement committee at your company, there are new limits for highly compensated employees, key employees and the maximum you can put into the plan using profit sharing. All these numbers are important as you review your plan design and DOL testing.

Please see our chart below for the new limits. Please reach out to your wealth manager or me if you have questions about what these numbers mean for you.

 

2020 Plan income limits

This material has been prepared for informational purposes only and should not be used as investment, tax, legal or accounting advice. All investing involves risk. Past performance is no guarantee of future results. You should consult your own tax, legal and accounting advisors.

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With four years’ of portfolio management experience under his belt, Matt came to Plancorp in 2016 to join our Retirement Plan Advisors practice. He loves helping business owners build retirement plans that make their companies stronger and give owners the ability to retire when they want. More »