The Internal Revenue Service announced higher retirement plan contribution limits for 2020. The amount employees are eligible to contribute to a 401k or 403b plan will increase from the annual limit of $19,000 in 2019 to $19,500 in 2020. The catch-up contribution limit for people age 50 and older will increase from $6,000 to $6,500 next year. Employee contribution limits to a SIMPLE plan will increase from $13,000 to $13,500 per year.
One item that did not change is the annual limit for contributions to a Traditional or Roth IRA account. Annual contribution limits will remain at the 2019 level of $6,000 contribution and $1,000 catch-up.
Additional details regarding 2020 updates can be found on the IRS website.