New Contribution Limits for 401(k) Plans, Traditional and Roth IRA, and Pension Plans

The IRS has announced cost of living adjustments affecting dollar limitations for pension plans and other retirement-related items for tax year 2020. For company retirement plans, the most recognized highlight is the 401(k) contribution limit increase to $19,500 for the new year.

2020

2019

Compensation $285,000 $280,000
Taxable Wage Base $137,700 $132,900
Highly Compensated Employee (HCE) $130,000 $125,000
Key Employee/Officer $185,000 $180,000
Defined Contribution Limit $57,000 $56,000
Max Contribution Limits (401k, 457, 403b) $19,500 $19,000
Max Catch up Age 50+ (401k, 457, 403b) $6,500 $6,000
Defined Benefit Limit $230,000 $225,000
SIMPLE $13,500 $13,000
SIMPLE (Catch up): 50+ $3,000 $3,000
IRA Contribution Limit $6,000 $6,000
IRA Catch up: 50+ $1,000 $1,000

 

Review the full list of contribution limit changes below and share with your plan participants!

 

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Sources/Disclaimers:

 

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