Financial Wellness Center

Nov 06, 2019

IRS Announces 2020 Retirement Plan 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

Taxes, Retirement

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