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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