- In 2020, you will be able to save as much as $19,500 in your 401(k), up from $19,000 this year.
- The limit for individual retirement accounts will stay the same at $6,000.
- If you're 50 or over, you will be able to put away up to $6,500 more in your 401(k) and an additional $1,000 in your IRA.
The IRS has raised the limits for how much you can put away in your retirement accounts in 2020.
Next year, you will be able to save up to $19,500 in your 401(k), up from $19,000 in 2019. That same limit also applies to 403(b), the government Thrift Savings Plan and most 457 plans (which cover some non-profits and state and local government workers).
The catch-up contribution for workers ages 50 and over will increase to $6,500 for next year, up from its current limit of $6,000.
So- called SIMPLE retirement accounts will have a new savings threshold of $13,500, up from $13,000.
But the changes, which are based on cost-of-living adjustments, will not apply to individual retirement accounts. IRAs will stay at their current $6,000 limit. Catch-up contributions for individuals 50 and over also remain unchanged at $1,000.