IRS boosts amount you can save in your 401(k) next year

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The IRS has raised the limits for how much you can put away in your retirement accounts in 2020.

Next year, you will be able to save up to $19,500 in your 401(k), up from $19,000 in 2019. That same limit also applies to 403(b), the government Thrift Savings Plan and most 457 plans (which cover some non-profits and state and local government workers).

The catch-up contribution for workers ages 50 and over will increase to $6,500 for next year, up from its current limit of $6,000.

So- called SIMPLE retirement accounts will have a new savings threshold of $13,500, up from $13,000.

But the changes, which are based on cost-of-living adjustments, will not apply to individual retirement accounts. IRAs will stay at their current $6,000 limit. Catch-up contributions for individuals 50 and over also remain unchanged at $1,000.

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