The 2020 cost of living adjustments for retirement plans have been released including:
- The amount employees can contribute to 401(k) plans has increased from $19,000 to $19,500 in 2020.
- The annual amount that can be contributed to a Simple plan has increased from $13,000 to $13,500.
- The amount of catch-up contributions to 401(k), 403(b),457(b) and SEPS for workers over age 50 increases from $6,000 to $6,500.
The increase in deferral amounts may provide opportunities for income tax savings and the ability to save more money for retirement.