Retirement plan contribution limits change for 2020:
- The maximum elective deferrals for individuals who participate in 401(k) plans increases to $19,500.
- The catch-up contribution for participants age 50 and older remain at $6,500.
- The maximum contribution for defined contribution pension plans increases to $57,000. This limit increases to $63,500 for 2020 if you include catch-up contributions.
- The amount of compensation that can be taken into account when determining employer and employee contributions is limited to $285,000 in 2020.
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