Question

Which of the following plan combinations will allow you to make $19,500 deferrals into each plan?...

Which of the following plan combinations will allow you to make $19,500 deferrals into each plan?

403(b) and 401(k)

SIMPLE and SEP

Pension Plan and Money Purchase Plan

401(k) and 457
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Answer #1

Employees can contribute up to $19,500 to their 401(k) plan for 2020, up $500 from 2019.

The basic employee contribution limit for 2020 is $19,500, up from $19,000 in 2019 and $18,500 in 2018. The $19,500 limit includes all elective employee salary deferrals, as well as any after-tax contributions made to a designated Roth account within your 401(k) or a special Roth 401(k) plan.The same contribution limits apply to 403(b) plans and most 457 plans, as well as to the federal government’s Thrift Savings Plan.

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