The Internal Revenue Service recently announced cost of living adjustments affecting dollar limitations for pension plans and other retirement-related items for Tax Year 2020. Highlights include:
|
401k Plan Limits for Plan Year |
2020 |
2019 |
2018 |
2017 |
| 401k Elective Deferrals | $19,500 | $19,000 | $18,500 | $18,000 |
| Annual Defined Contribution Limit | $57,000 | $56,000 | $55,000 | $54,000 |
| Annual Compensation Limit | $285,000 | $280,000 | $275,000 | $270,000 |
| Catch-up Contribution Limit | $6,500 | $6,000 | $6,000 | $6,000 |
| Highly Compensated Employees | $130,000 | $125,000 | $120,000 | $120,000 |
|
Non-401k Related Limits |
2020 |
2019 |
2018 |
2017 |
| 403(b)/457 Elective Deferrals | $19,500 | $19,000 | $18,500 | $18,000 |
| SIMPLE Employee Deferrals | $13,500 | $13,000 | $12,500 | $12,500 |
| SIMPLE Catch-up Deferral | $3,000 | $3,000 | $3,000 | $3,000 |
| SEP Minimum Compensation | $600 | $600 | $600 | $600 |
| SEP Annual Compensation Limit | $285,000 | $280,000 | $275,000 | $270,000 |
| Social Security Wage Base | $137,700 | $132,900 | $128,400 | $127,200 |
Written by Summit Blog Admin
