The IRS has announced the 2020 401(k) contribution limits; the new limit for 2020 will be $19,500. (This is an increase of $500 per year.) If you will be 50 or older in 2020, you are eligible to make extra “catch up” contributions of up to $6,500 per year, up to the plan limit or IRS limit of $26,000.
Keep these limits in mind when considering increases in your contributions for next year or whenever you get an increase in your compensation. It’s never too early to start contributing to your retirement savings.
To make changes for your contributions in your DT/AT/DTD 401(k) plan, log on to your account at empowermyreitrement.com. Once logged in, click My Account > My Contributions. Be sure you also take a moment to review and update your beneficiaries, if needed.
Reminder: Full-time and part-time employees age 21 or older are automatically enrolled in the Company’s 401(k) plan at a pretax contribution rate of 6% after completing 1,000 hours of service. Get more information on our 401(k) plan …
Looking for more info on how best to save for retirement? Check out these links from Merrill Edge:
- How much do you really need to save for retirement?
- What percentage of my salary should I put into a 401(k)?
- Are you on track for retirement? Try this calculator
For a complete look at the changes in plan limits for 2020, see “401(k) contribution limit increases to $19,500 for 2020; catch up limit increases to $6,500” on the IRS website.