The IRS announced on November 6, that several contribution limits in qualified retirement plans will increase next year.
These limits cover cost of living adjustments to a variety of retirement plan limitations. The chart below provides a summary of the amounts for your convenience.
2020 Retirement Plan Limits Summary
|IRA Contribution Limit||$6,000||$6,000|
|IRA Catch-Up Contributions||1,000||1,000|
|IRA AGI Deduction Phase-Out Starting at|
|Single or Head of Household||$64,000||$65,000|
|SEP Minimum Compensation||600||600|
|SEP Maximum Contribution||56,000||57,000|
|SEP Maximum Compensation||280,000||285,000|
|SIMPLE Maximum Contributions||13,000||13,500|
|401(k), 403(b), Profit-Sharing Plans, etc.|
|Defined Contribution Limits||56,000||57,000|
|Defined Benefit Limits||225,000||230,000|
|457 Elective Deferrals||19,000||19,500|
|Control Employee (board member or officer)||110,000||115,000|
|Control Employee (compensation-based)||225,000||230,000|
|Taxable Wage Base||132,900||137,700|
Interested in learning more about the 2020 retirement plan limits? Contact us here.