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IRA and 401(k) Contribution Limits


Image of Person Filing Tax Return with Calculator and Laptop

Due to the COVID-19 outbreak, the filing deadline for 2019 tax returns has been extended until July 15 of 2020. This means that July 15 is now the date in which filers can make 2019 contributions to Traditional and Roth IRAs.

Normally, tax-payers have up until the tax-filing deadline to make prior year contributions to Roth and Traditional IRAs. But with the tax filing extension, the window to capitalize on the tax advantages of contributing to these retirement accounts is even wider.

For the 2019, taxpayers under 50 can contribute up to a $6,000 to their IRAs - Traditional and Roth Combined. For those over 50, the maximum is increased to $7,000.

2020 Contribution Limits for Retirement Accounts

Employment with the State of California offers many great benefits. Among those benefits is the guaranteed income state employees earn through a CalPERS pension.

But there is another form of retirement planning the State makes available to its employees. Savings Plus is a voluntary voluntary retirement planning program that offers 401(k) and 457(b)retirement accounts. These accounts are funded through automatic payroll deductions, and are a great way to save additional money for retirement.

The California Job Blog has a more in-depth article about Savings Plus, how these account work and the investment options available to State employees.

The purpose of this article is to highlight the contribution limits for the main types of retirement accounts. The tables below show the limits for 401(k), 457(b) and IRA accounts. 401(k) and 457(b) have identical limits.

IRAs (Individual Retirement Arrangements) are accounts available to set up at anytime. They are set up through a bank and are unrelated to a specific employer. Contributions are made similar to a savings account, not through payroll deductions. We've included contribution limits for these accounts as well.


IRA

Year Limit
2018 $5,500
2019 $6,000
2020 $6,000

IRA (50 or older)

Year Limit
2018 $6,500
2019 $7,000
2020 $7,000

401(k) & 457(b)

Year Limit
2018 $18,500
2019 $19,000
2020 $19,500

40(k) & 457(b)

Year Limit
2018 $24,500*
2019 $25,000*
2020 $26,000**
* Total includes catch-up contribution limit of $6,000
** Total includes catch-up contribution limit of $6,500

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