IRS Announces 2020 Retirement Plan Limits

By November 6, 2019Article

IRS Contribution Limits
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On November 6, 2019, the IRS announced cost of living adjustments changing dollar limitations for pension plans and other retirement-related items for the tax year 2020. Here are the highlights:

 

401k Plan Limits for Year 2020 2019 2018 2017 2016 2015 2014
401k Elective Deferrals1 $19,500 $19,000 $18,500 $18,000 $18,000 $18,000 $17,500
Catch-Up Contribution Limit1 $6,500 $6,000 $6,000 $6,000 $6,000 $6,000 $5,500
Annual Defined Contribution Limit1 $57,000 $56,000 $55,000 $55,000 $53,000 $53,000 $52,000
Annual Compensation Limit1 $285,000 $280,000 $275,000 $270,000 $265,000 $265,000 $260,000
Highly Compensated Employees1 $130,000 $125,000 $120,000 $120,000 $120,000 $120,000 $115,000

 

Non-401k Related Limits 2020 2019 2018 2017 2016 2015 2014
403(b)/457 Elective Deferrals1 $19,500 $19,000 $18,500 $18,000 $18,000 $18,000 $17,500
403(b)/ 457 Catch-Up Contribution Limit $6,500 $6,000 $6,000 $6,000 $6,000 $6,000 $5,500
SIMPLE Employee Deferrals1 $13,500 $13,000 $12,500 $12,500 $12,500 $12,500 $12,000
SIMPLE Catch-Up Deferral1 $3,000 $3,000 $3,000 $3,000 $3,000 $3,000 $2,500
SEP Minimum Compensation1 $600 $600 $600 $600 $600 $600 $550
SEP Annual1 Compensation Limit1 $285,000 $280,000 $275,000 $270,000 $265,000 $265,000 $260,000
Social Security Wage Base2 $137,700 $132,900 $128,400 $127,200 $118,500 $118,500 $117,000


As always, please feel free to contact the Financial Wellness Center if you have any questions.

 

1Internal Revenue Service, Notice 2019-59
2Social Security Administration