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2020 Retirement Plan Limits

2020 Retirement Plan Limits

| November 11, 2019

The Internal Revenue Service (IRS) has announced cost-of-living adjustments for 2020, which affect dollar limitations for retirement plans and other retirement-related values. All limits increased from 2019 to 2020. The 2020 limits are as follows:

  • 401(k) Deferral Limit – Increase from $19,000 to $19,500
  • Catch-up Deferral Limit – Increase from $6,000 to $6,500
  • Defined Contribution Plan Maximum Annual Additions – Increase from $56,000 to $57,000 (or $63,500 with catch-up)
  • Defined Benefit Plan Maximum Annual Benefit – Increase from $225,000 to $230,000
  • Annual Compensation Limit – Increase from $280,000 to $285,000
  • HCE Compensation Limit – Increase from $125,000 to $130,000
  • Key Employee Limit – Increase from $180,000 to $185,000
  • Social Security Wage Base – Increase from $132,900 to $137,700

Click HERE for a complete list of 2020 retirement plan limits