2020 retirement plan limits – The Willits News

As part of your 2020 planning, now is the time to review funding your retirement accounts. By establishing your contribution goals at the beginning of each year, the financial impact of saving for your future should be more manageable. Here are annual contribution limits:

Retirement Plans                       2019                     2020                Change            Age 50 or older catch up

IRA: Traditional                          $6,000                 $6,000               none                add: $1,000

IRA: Roth                                   $6,000                 $6,000               none                add: $1,000

IRA: Simple                             $13,000               $13,500            +$500               add: $3,000

401(k), 403(b), 457 plans          $19,000               $19,500            +$500               add: $6,500

Take action

If you have not already done so, please consider:

-Reviewing and adjusting your periodic contributions to your retirement savings accounts to take full advantage of the tax advantaged limits
-Setting up new accounts for a spouse or dependent(s)
-Using this time to review the status of your retirement plan
-Reviewing contributions to other tax-advantaged plans including flexible spending accounts and health savings accounts

James Angell is a WIllits based Certified Public Accountant. His office is located at 461 S. Main St. and he can be reached at 459-4205.

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