401(k) Contribution Limits Increase for 2020; IRA Contribution Limits Unchanged

The contribution limit for employees who participate in 401(k) plans increases from $19,000 to $19,500 for 2020. The catch-up limit rises to $6,500, which results in a total limit of $26,000 for people aged 50 and over in 2020.

The limit on annual contributions to an IRA remains unchanged at $6,000. The additional catch-up contribution limit for individuals aged 50 and over is not subject to an annual cost-of-living adjustment and remains $1,000.