The Internal Revenue Service (IRS) announced cost of living adjustments (COLAs) affecting dollar limitations for retirement plans and other retirement-related items for Tax Year 2020. Good news, participants will be able to save more next year!
In general, many of the limits will increase for 2020 because the cost-of-living index met the statutory thresholds that trigger their adjustment.
|Elective Deferrals [401(k), 403(b) & 457 plans]||$19,500||$19,000|
|Simple Employee Deferral||$13,500||$13,000|
|Simple Catch-Up Contribution||$3,000||$3,000|
|Annual Contribution Limit||$57,000||$56,000|
|Annual Compensation Limit||$285,000||$280,000|
|Highly Compensated Threshold||$130,000||$125,000|
|Income Subject to Social Security||$137,700||$132,900|
|Key Employee Compensation||$185,000||$180,000|
|DB Plan Annual Benefit Limit||$230,000||$225,000|
As published by the Internal Revenue Service.
For full details on the pension plan limitations for 2020 click here.
For more information contact our team.