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.