It's that time of year again. On November 6, 2019, the
Internal Revenue Service (IRS) announced cost-of-living adjustments affecting
dollar limitations for pension plans and other retirement-related
items for the 2020 tax year. These limits include both employee and
employer contribution limits.
Employers should review and update their qualified retirement
plans, including their 401(k) plans and pension plans, and summary
plan descriptions and other relevant employee communications, to
ensure that their employees can maximize their contributions.
The list below includes details on the key limit increases
effective January 1, 2020:
- The contribution limit for employees
who participate in 401(k), 403(b), and most 457 plans will increase
from $19,000 to $19,500.
