2020 Retirement Plan Contribution Limits
Each year the IRS announces annual inflation adjustments pertaining to retirement account contribution limits. Most workplace retirement contributions will see an increase in 2020. While personal IRA contribution limits haven’t changed, income phase-out ranges have. See below for details…
Workplace Retirement Plans
| Type of Plan | Contribution Limit |
| 401(k) / 403(b) / 457 | $19,500 |
| 401(k) / 403(b) / 457 Catch Up | $6,500 |
| SEP IRA and Solo 401(k) | $57,000 |
| SIMPLE IRA | $13,500 |
| SIMPLE IRA Catch Up | $3,000 |
Individual Retirement Accounts
| Type of Plan | Contribution Limit |
| IRA (Traditional and Roth) | $6,000 |
| IRA Catch Up | $1,000 |
Taxpayers can deduct contributions to a Traditional IRA if they meet certain conditions. If during the year either the taxpayer or his or her spouse was covered by a retirement plan at work, the deduction may be reduced, or phased out, until it is eliminated, depending on filing status and income. (If neither the taxpayer nor his or her spouse is covered by a retirement plan at work, the phase-outs of the deduction do not apply.)
For 2020, a single taxpayer covered by a workplace retirement plan, the phase-out range is $65,000 to $75,000. For married couples filing jointly, where the spouse making the IRA contribution is covered by a workplace retirement plan, the phase-out range is $104,000 to $124,000. For an IRA contributor who is not covered by a workplace retirement plan and is married to someone who is covered, the deduction is phased out if the couple’s income is between $196,000 and $206,000. For a married individual filing a separate return who is covered by a workplace retirement plan, the phase-out range is not subject to an annual cost-of-living adjustment and remains $0 to $10,000.
The income phase-out range for taxpayers making contributions to a Roth IRA is $124,000 to $139,000 for singles and heads of household. For married couples filing jointly, the income phase-out range is $196,000 to $206,000. The phase-out range for a married individual filing a separate return who makes contributions to a Roth IRA is not subject to an annual cost-of-living adjustment and remains $0 to $10,000.