by Gregory S. Dowell
November 14, 2019
The IRS recently released the following limits for 2020 retirement plans:
- 401(k) plans, 403(b) plans, most 457 plans, and the Federal government’s Thrift Savings Plan elective deferrals – maximum is $19,500 (up from $19,000 in 2019).
- Catch-up contribution limit for those over age 50 – increases to $6,500 (up from $6,000).
- IRAs – maximum deductible contribution remains the same at $6,000.
- IRAs – ability to make a deductible contribution will phase out for singles and head of household filers between $65,000 and $75,000; phase-out will be between $104,000 and $124,000 for married couples filing jointly, where the spouse making the IRA contribution is covered by a workplace retirement plan; $196,000 to $206,000 when married-filing-joint IRA contributor is not covered by a workplace retirement plan but is married to someone who is.
- Roth IRAs – phaseout range for determining the maximum contribution will be $196,000 to $206,000 for married filing jointly; $124,000 to $139,000 for singles and heads of household.
- AGI limit for the saver’s credit – increases to $65,000 for married couples filing jointly; $48,750 for heads of household; $32,500 for single taxpayers and for married individuals filing separately.