2020 COLA 401(k) Limits and Retirement Plan Limit Increases
Higher 401(k) Limits and More
The IRS released the cost of living adjustments (COLA) for various retirement plan limitations that will take effect on January 1, 2020. 401(k) Plan Sponsors and plan participants enjoy saving even more for retirement.
Many of these limits, including 401(k) deferrals and catch-up deferrals, are increasing.
The limits most frequently asked about are those that are due for an increase! These limits include:
the annual compensation that is considered for plan purposes,
the salary deferral 401(k) limit (including catch-up), and
the total amount that can be contributed on behalf of any participant in a defined contribution (including 401(k)) plan.