PSA: Retirement Plan Contribution Limits for 2019 and 2020

Wondering how much you can sock away for retirement?  Knowing the limits for different types of accounts can help you maximize your retirement savings AND save money on taxes.Last week, the IRS released the new deferral rates for 2020.  Without further adieu, see below for the 2019 limits and the new 2020 limits so you can stay on top of your contributions.

• 💲 401(k) Deferral Limit: Increase from $19,000 to $19,500 (additional catch up if you are over 50 is $6,000 is 2019 and $6,500 in 2020).
• 💲 Regular IRAs: Stays the course at $6,000 for 2019 and 2020 with an additional $1,000 allowed if over 50.
• 💲 SEP IRAs: The limit in 2019 was $56,000 and it increases to $57,000 in 2020 (with a cap of 25% of your net earnings).

• 💲 SIMPLE Retirement Accounts: $13,500, up from $13,000 for 2019.

• 💲 Defined Contribution Plan Maximum Annual Additions – Increase from $56,000 to $57,000 (or $63,500 with catch-up)

• 💲 Defined Benefit Plan Maximum Annual Benefit – Increase from $225,000 to $230,000

With some careful planning, you can make sure you maximize every dollar you're bringing home.

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