U.S. tax laws place limits on the dollar amount of contributions to retirement plans and IRAs and the amount of benefits under a pension plan. The Internal Revenue Code (IRC) requires the limits to be adjusted annually for cost-of-living increases. IRS Announces 2019 new Retirement plan contribution limits for 401(K) and more.
Highlights of changes for 2020
- The contribution limit for employees who participate in 401(k), 403(b), most 457 plans, and the federal government’s Thrift Savings Plan is increased from $19,000 to $19,500.
- The catch-up contribution limit for employees aged 50 and over who participate in these plans is increased from $6,000 to $6,500.
- The limitation regarding SIMPLE retirement accounts for 2020 is increased to $13,500, up from $13,000 for 2019.
- SIMPLE Catch-up Contribution Limit remains unchanged at $3,000.
- The limit on annual contributions to an IRA remains unchanged at $6,000. The additional catch-up contribution limit for individuals aged 50 and over is not subject to an annual cost-of-living adjustment and remains $1,000.
The Retirement Plan Company is pleased to present this table for your convenience. Contact Us for more assistance..
|401(k) and 403(b) Deferral Limit||19,500||19,000||18,500||18,000|
|457 Deferral Limit||19,500||19,000||18,500||18,000|
|401(k), 403(b), 457 Catch-up Contribution Limit||6,500||6,000||6,000||6,000|
|SIMPLE Deferral Limit||13,500||13,000||12,500||12,500|
|SIMPLE Catch-up Contribution Limit||3,000||3,000||3,000||3,000|
|Annual Compensation Limit||285,000||280,000||275,000||270,000|
|Defined Benefit 415 Limit||230,000||225,000||220,000||215,000|
|Defined Contribution 415 Limit||57,000||56,000||55,000||54,000|
|Dollar Limit for HCEs||130,000||125,000||120,000||120,000|
|Dollar Limit for Key Employee||185,000||180,000||175,000||175,000|
|Social Security Taxable Wage Base||137,700||132,900||128,400||127,200|