The Treasury Department has announced inflation-adjusted figures for retirement account savings for 2020. The chart below compares retirement plan limits for 2019 versus the new limits for 2020.
As shown the in the chart above, there are a lot of changes that will help your employees save more. HR Departments should plan to adjust their systems for next year and to inform employees about the new limits in year-end open enrollment materials. Because the IRS announced the 2020 contribution changes close to the fall open enrollment period, plan sponsors may need to provide addendums to benefits materials that have already been distributed.
For additional information or guidance related to this article, contact Kerri Walz at kwalz@vlcpa.com or 800.887.0437.
