Employees in 401(k) plans may contribute up to $19,500 to their accounts next year, an increase from $19,000 in 2019, the Internal Revenue Service said Wednesday.
The IRS notice, published on its website, also affects employees in 403(b) plans and most 457(b) plans, as well as the federal government's Thrift Savings Plan.
The catch-up contribution limit for employees 50 and over who participate in these plans will rise to $6,500 from $6,000.
The limit on annual contributions to an Individual Retirement Account remains unchanged at $6,000. The catch-up contribution limit for savers 50 and older remains at $1,000. IRA contributions are not subject to an annual cost-of-living adjustment, the IRS said.