The 401(k) Contribution Limit Is Increasing in 2020
The IRS just announced its latest inflation adjustments for 2020, and one of the most significant for investors is the upward adjustment in the contribution limits to 401(k) and other qualified retirement plans. With that in mind, here's a discussion of just how much more you can legally save in your tax-advantaged employer retirement plan and how much you should be saving for your own retirement.
For 2020, the annual contribution limit for elective deferrals to a 401(k), 403(b), 457, or Thrift Savings Plan is rising by $500 to $19,500. And keep in mind that this is the limit for elective deferrals, meaning the money that you as an employee choose to contribute to the plan. It does not include any nonelective employee contributions, any contributions (matching or otherwise) that your employer makes on your behalf, or any allocations of forfeitures.
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Source Fool.com
