What Tax and Contribution Limit Changes Will Take Place in 2020?
More changes are coming for 2020 as contribution limits are set to increase once again. This is good news for those looking to defer more of their income to their retirement accounts. See below for some of the major highlights of the tax and contribution limit changes that are set to take place in 2020.
Defined Benefit & Defined Contribution Limits
|Defined-contribution plans, basic limit||$ 57,000|
|Defined-benefit plans, basic limit||$ 230,000|
|401(k), 403(b), 457(b), Roth 401(k) plans elective deferral limit||$ 19,500|
|Defined contribution catch up amount (individuals 50 and over)||$ 6,500|
|SIMPLE IRA elective deferral limit||$ 13,500|
|SIMPLE IRA catch up amount (individuals 50 and over)||$ 3,000|
IRA/Roth IRA Contribution Limits
|Traditional, non-deductible IRA contribution limit||None|
|Traditional, deductible IRA contribution limit||$ 6,000|
|Roth IRA contribution limit||$ 6,000|
|Roth IRA conversion limit||Unlimited|
|IRA/Roth IRA catch up amount (individuals 50 and over)||$ 1,000|
Health Savings Account (HSA) Limits
|Health Savings Account (HSA) contribution limit – individuals||$ 3,550|
|Health Savings Account (HSA) expense limit – individuals||$ 6,900|
|Health Savings Account (HSA) contribution limit – families||$ 7,100|
|Health Savings Account (HSA) expense limit – families||$ 13,800|
Standard Deduction Amounts
|Standard Deduction (Single, or married filing separately)||$ 12,400|
|Standard Deduction (Married, filing jointly)||$ 24,800|
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