IRS announces 2020 retirement account contribution and income limit amounts

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by NikeSwish​

www.irs.gov/pub/irs-drop/n-19-59.pdf

Main updates:

Contribution Limits

  • 401(k)/403(b)/most 457 plans/Thrift Savings Plan increases to $19,500.
  • Catch up limit for employees 50 and older rises to $6,500 from $6,000
  • SIMPLE contribution limits goes up to $13,500 from $13,000.
  • IRA contribution amount remains the same at $6,000

Income Limits

  • Single IRA income limits when covered by a workplace retirement plan phaseouts increased to $65,000-$75,000 from $64,000-$74,000
  • MFJ IRA income limits when covered by a workplace retirement plan and the spouse is making contribution phaseouts increased to $104,000-$124,000 from $103,000-$123,000
  • MFJ IRA income limits for the spouse not covered under workplace retirement account increased to $196,000-$206,000 from $193,000-$203,000.
  • MFS who is covered by a workplace retirement account did not receive a COL adjustment and remains at $0-$10,000
  • The income phaseout for taxpayers making Roth IRA contributions is now $124,000-$139,000 for singles and HoH, up from $122,000-$137,000. For MFJ, the phaseout is now $196,000-$206,000 up from $193,000-$203,000. MFS remains flat at $0-$10,000.
  • The income limit for the Saver’s Credit is $65,000 for MFJ, $48,750 for HoH, and $32,500 for singles and MFS. Increase of $1,000/$750/$500 respectively.

Everyone basically knew the 401K limit would go to $19,500 but it was a surprise the IRA amount remained at $6,000.

 

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