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IRS Announces 2020 Contribution and Benefit Limits

Posted by Michelle Buckley on Nov 12, 2019 12:17:13 PM

2016Retirement

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

  2019 2020
IRAs
IRA Contribution Limit $6,000 $6,000
IRA Catch-Up Contributions 1,000 1,000
IRA AGI Deduction Phase-Out Starting at
Joint Return $103,000 $104,000
Single or Head of Household $64,000 $65,000
SEP
SEP Minimum Compensation 600 600
SEP Maximum Contribution 56,000 57,000
SEP Maximum Compensation 280,000 285,000
SIMPLE Plans
SIMPLE Maximum Contributions 13,000 13,500
Catch-up Contributions 3,000 3,000
401(k), 403(b), Profit-Sharing Plans, etc.
Annual Compensation 280,000 285,000
Elective Deferrals 19,000 19,500
Catch-up Contributions 6,000 6,500
Defined Contribution Limits 56,000 57,000
ESOP Limits 1,130,000
225,000
1,150,000
230,000
Other
HCE Threshold 125,000 130,000
Defined Benefit Limits 225,000 230,000
Key Employee 180,000 185,000
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.

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Topics: Benefit Plan Advising & Auditing

Michelle Buckley

Michelle Buckley

Michelle Buckley is a Vice President in Meaden & Moore’s Assurance Services Group with 23 years of public accounting experience.

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