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Retirement Plan Limits for 2020

The Internal Revenue service has recently announced the cost-of-living adjustments applicable to dollar limitations for tax qualified retirement plans.  The limits are generally effective January 1, of the current year.  The limits are as follows:

Deferral Limits

2019

2020

Maximum 403(b), 457(b) & 401(k) Contributions

$19,000

$19,500

Maximum 401(k) Catch-Up Contribution

$6,000

$6,500

Simple Maximum

Simple Catch-Up

$13,000

$3,000

$13,500

$3,000

Benefit Limits



IRC 415(c) Defined Contribution

$56,000

$57,000

415(b) Defined Benefit

$225,000

$230,000

 

 

 

Compensation Limits 



Maximum Compensation Limit

$280,000

$285,000

Highly Compensated Employee

$125,000

$130,000

Key Employee Compensation for Top Heavy

$180,000

$185,000


 

 

Social Security

 

 

Social Security Wage Base (OASDI basis)

$132,900

$137,700


The above does not constitute, and should not be considered to be, legal or tax advice.  The tax rules are complicated and their impact on a particular individual may differ depending on the individuals specific circumstances.  Please consult with a legal or tax advisor regarding your specific situation.