MMQH: IRS Announces 2020 Cost-of-Living Adjustments
Monday Morning Quick Hits:
On November 6, 2019, the IRS released Notice 2019-59, announcing cost-of-living adjustments that affect contribution limits for retirement plans in 2020. Some notable changes include that the elective deferral limit for 401(k) and 403(b) plans is increasing from $19,000 to $19,500 and that the defined contribution limit is increasing from $56,000 to $57,000.
Some associated tax breaks and other items have changed from 2019; please Click Here for further details.
If you are a participant in a workplace retirement plan and are maxing out your contributions every year, make sure to remember to adjust your contributions after the New Year to reflect the new allowable limits.
Please call us if you have any questions on this or anything else.