Are you hoping to increase your retirement account contributions in 2020? That's a great financial goal, since many Americans are saving far too little.

Saving for retirement in a tax-advantaged account such as a 401(k) or an IRA is the best way for most people to prepare for their golden years. Investing costs less when the money you set aside for it lowers your taxable income and decreases your eventual bill from the IRS.There are annual limits to the tax-advantaged contributions you can make, but these limits went up in 2020.

Image source: Getty Images.

The table below shows the maximum you can personally contribute to different kinds of retirement savings accounts in 2020. This is separate from any employer contributions, which are subject to a different limit.

While there are no income limits for making 401(k) or Simple IRA contributions, there are some income-based restrictions for traditional and Roth IRAs.

Employers are also allowed to make contributions to your retirement accounts for you. These are subject to a separate limit and employer contributions don't affect how much you can personally contribute.

The table below shows the maximum contributions employers can make in 2020.

Often, employers match a percentage of the contributions you make to your own 401(k) or Simple IRA. For example, your company may match 50% of your 401(k) contributions up to a maximum of 4% of your salary.

If your employer offers this help, you should contribute enough to earn the maximum match, or you'll be leaving free money on the table.

Now you know the maximum you can contribute to tax-advantaged retirement accounts in 2020. You should aim to contribute as much as possible to them. If you have enough money to max them out, you'll be well on your way to a secure future.

See the article here:
What Are the Maximum Limits for Investing in Your Retirement Savings Accounts in 2020? - The Motley Fool