![](https://comperiorc.com/wp-content/uploads/2019/10/401KSecond_Graphic_Layers-Pension-Plan-Limits-1024x536.png)
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.
![](https://comperiorc.com/wp-content/uploads/2019/11/2020-IRS-Limits-1.jpg)