The Internal Revenue Service has recently updated the contribution limits for retirement plans for 2020.
The table below gives a nice summary and comparison to past years’ limits. It also shows you what how much of your pay is used for calculating certain contributions. For instance, the taxable wage base of $137,700 is the max pay that will be subject to social security tax.
Something else that I wanted to point out is Catch-Up feature. This allows you to contribute money to your plan if you are age 50 or older. You don’t have to wait until you turn 50, either. You just have to urn 50 at some point in the year. So, if you turn 50 on December 4, 2020, you can start doing the Catch-Up contributions right at the beginning of 2020
Take a look at these numbers and let me know if you have any questions. Have a great Thanksgiving!
Joe Baker, CFP®
Baker Asset Management, LLC
joebaker@bakerassetmanagement.com
