On November 6, 2019, the IRS announced cost of living adjustments affecting dollar limitations for pension plans and other retirement-related items for tax year 2020. The Internal Revenue Code requires that the Secretary of the Treasury adjust the limits annually.

Some highlights are:

•      The elective deferral (contribution) limit for employees who participate in 401(k), 403(b), most 457 plans, and the federal government’s Thrift Savings Plan will increase to $19,500.

•      The catch-up contribution limit for those aged 50 and over will also increase to $6,500.