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.