As we come to a close for 2019, the IRS has set new limits for retirement plan and health account contributions for the 2020 tax year. Below are highlights of these cost-of-living adjustments:
Employer-sponsored plans: 401(k), 403(b), or 457(b)
401k, 403b, or 457 plan catch-up contribution (age 50+)
Simple IRA catch-up contribution (age 50+)
Highly compensated employee
415(c) defined contribution plans: SEP IRA, Profit-sharing
Traditional and Roth IRA
Traditional and Roth IRA catch-up contribution (age 50+)
Deductible IRA income limit, single, active participant in workplace retirement plan
$64,000 – $74,000
$65,000 – $75,000
Deductible IRA income limit, married, active participant in workplace retirement plan
$103,000 – $123,000
$104,000 – $124,000
Deductible IRA income limit, married, spouse is active participant in workplace retirement plan
$193,000 – $203,000
$196,000 – $206,000
Roth IRA income limit, single
$122,000 – $137,000
$124,000 – $139,000
Roth IRA income limit, married filing jointly
$193,000 – $203,000
$196,000 – $206,000
HSA, single coverage
HSA, family coverage
HSA catch-up contribution (age 55+)
To be proactive with your 2020 contributions, review your current elections and make the necessary adjustments to contribute the maximum allowable amount in your employer-sponsored or retirement plans while open-enrollment season is upon us.
Details on these and other retirement-related adjustments for 2020 can be found in Notice 2019-59 (PDF) (Resource Internal Revenue Service)
If you have questions concerning your retirement plans or want to make sure you have sufficient assets to cover your retirement income needs, please email us at email@example.com or call us (561) 416-2992 to set up an appointment with one of our advisors.
*Applies for determining highly compensated employees for the 2020 plan year. Limits stated above are subject to the provisions of the plan. Refer to your plan document or contact your plan consultant (TPA) for more information. The content of this document is for general information only and is believed to be accurate and reliable as of posting date but may be subject to change. Benchmark Financial Wealth Advisors LLC, or any of our affiliates, do not provide tax or legal advice. Please consult your tax or legal advisor as to any tax, or legal statements made herein.
Any opinions expressed on this email are the opinion or view of Benchmark Financial and/or an advisor of Benchmark Financial and these opinions are subject to change at any time without notice. The content is developed from sources believed to be providing accurate information. Any comments or postings are provided for informational purposes only and does not represent an offer of or a solicitation for advisory services in any state/jurisdiction of the United States or any country where the firm is not registered, notice filed, or exempt. Readers should conduct their own review and exercise judgment prior to investing and should carefully consider their own investment objectives and not rely on any post, chart, graph or marketing piece to make a decision. Investments are not guaranteed, involve risk and may result in a loss of principal. Past performance does not guarantee future results. Investments are not suitable for all types of investors. Benchmark Financial is not a broker dealer and does not offer tax or legal advice. Please consult your tax or legal advisor for assistance regarding your individual situation.
Benchmark Financial Wealth Advisors is an independent advisory firm providing wealth guidance, investment management, financial planning and qualified retirement plan services. We counsel individuals, families and business owners on an ongoing basis. As a fiduciary, we serve as an advocate for our clients, providing objective advice and comprehensive guidance across all aspects of our clients’ financial lives.
Investment Advisory Services offered through Benchmark Financial Wealth Advisors LLC, an SEC Registered Investment Advisor. Registration does not imply a certain level of skill or training. Fixed insurance products offered through Benchmark Financial Insurance Advisors LLC. Benchmark Financial Wealth Advisors LLC and Benchmark Financial Insurance Advisors LLC are separate entities. Additional information about Benchmark Financial and our advisors is also available online at www.adviserinfo.sec.gov.