View as PDF On October 26, 2020, the IRS announced cost of living adjustments changing dollar limita...
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
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