Notice 2019-59, the IRS highlighted the following adjustments taking effect on Jan. Because the IRS announced the 2020 contribution changes so late this year, many plan sponsors will need to provide addendums to benefits materials that have already been printed for the 2020 benefits open enrollment period. HR and payroll managers should adjust their systems for the new year and inform employees about the new limits in year-end open enrollment materials. 26, 2020 see theįor 2021, 401(k) Contribution Limit Unchanged for Employees, Up for Employers.Įmployee 401(k) contributions for 2020 can increase by $500 to $19,500, while the combined employer and employee contribution limit rises by $1,000 to $57,000,įor participants ages 50 and over, the additional "catch-up" contribution limit will rise to $6,500, up by $500. Update: The IRS issued 2021 retirement plan limits on Oct.
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