Maximize Your Retirement Savings in 2020

Learn about the contribution limits for 2020

As we begin a new year, take a moment to evaluate your retirement savings, and save more for your future. This year, there are good tidings for retirement savers, because federal contribution limits have increased in 2020, from $19,000 to $19,500.

Each year, the IRS sets limits on contributions to retirement savings accounts such as 401(k) plans, 403(b) plans, and designated Roth contributions. By saving as much as you can within these contribution limits, you will maximize your retirement savings.

As a YMCA employee, you have a special opportunity to build your retirement savings by saving an additional amount in the YMCA Retirement Fund’s tax-deferred 403(b) Smart Account. Discover the maximum amount you can contribute to the 403(b) Smart Account by using the Fund’s Contribution Limits Calculator.

You can also refer to this table for more information on 2020 federal contribution limits.

2020 Federal Contribution Limits
Total Contributions 100% of compensation* or $57,000 (whichever is less)
Age 50+ Catch-Up $6,500
2020 Tax-Deferred Contribution Limits
Tax-Deferred Contributions Maximum (individual limit from all salary reduction retirement plans) $19,500
15+ Years of Service Catch-Up** (increases tax-deferred contribution maximum)   $3,000
Age 50+ Catch-Up (increases both total and tax-deferred contribution maximum)   $6,500

* The IRS Code limits includable compensation to $285,000.

**The 15+ Years of Service Catch-Up amount can be as much as $3,000 but is limited based on past contributions.

It’s important to note that while the contribution limit for 2020 is $19,500, there are some YMCA employees who may qualify for additional opportunities to increase their retirement savings.

1. 15+ Years of Service Catch-Up. The 15+ Years of Service Catch-Up allows long-term participants to increase their savings to “make up” for career periods when they did not maximize their tax-deferred contributions.

To be eligible, you must have worked for a YMCA for at least 15 years, and your previous tax-deferred contribution cannot have exceeded an average of $5,000 per year of service. You must also not use more than $15,000 of catch-up contributions over your lifetime, with a limit of $3,000 in any one year. Restrictions may apply. Please contact our Customer Service Department by calling 1-800-RET-YMCA for details.

2. Age 50+ Catch-Up. Participants who are age 50 or older (or will turn age 50 during the calendar year) are allowed to increase their annual tax-deferred savings by $6,500. By taking advantage of the Age 50+ Catch-Up, they may also increase their total contribution limit by $6,500.

If eligible, amounts are attributed to the 15+ Years of Service Catch-Up first (to the extent it is available) and then to the Age 50+ Catch-Up. For example, if you are age 50 or over and eligible for the entire $3,000 for the 15+ Years of Service Catch-Up as well, you can save $29,000 tax-deferred in 2020 ($19,500 from the basic limit plus $3,000 of the 15+ Years of Service Catch-Up plus $6,500 for Age 50+ Catch-Up). Restrictions may apply. Please contact our Customer Service Department by calling 1-800-RET-YMCA for details.

Are you ready to set your retirement savings goal? Make 2020 the year you decide to take charge of your financial future. Calculate how much you can save this year and consider saving more by opening or increasing your savings in the Fund’s 403(b) Smart Account.

Getting started is simple: download the 403(b) Smart Account form, fill it out, and bring it to your local Human Resources Department. Your future self will thank you!