Maximum 401(k) Contributions Are Climbing Again for 2020
The maximum contributions you can make to your employer 401(k) retirement savings plan are going up again in 2020. For those younger than 50, the maximum of $19,500 will be $500 higher than 2019's limit of $19,000. If you're 50 or older, you'll be allowed to save up to $26,000 in a 401(k) in 2020 -- $1,000 more than you could in 2019.
2020 marks the second year in a row that retirement investors have enjoyed gains in the maximum contribution amounts for 401(k) plans. Only about 1 out of 8 participants are able to save enough to reach the limits, but it's still smart to look at 401(k) plans even if you can't max them out. Below, we'll look at some of the biggest benefits of 401(k)s, as well as an alternative for those who aren't fortunate enough to have an employer that offers one.
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Source Fool.com
