IRS Announces 2020 Retirement Plan Limits
Nov 7, 2019
Under the Internal Revenue Code, the IRS is required to annually adjust the limits that apply to retirement plan contributions and benefits for cost-of-living increases. The limits for 2020 have now been announced by the IRS, as follows:
| Item | 2019 Limit | 2020 Limit |
| Limit on recognizable retirement plan compensation | $280,000 | $285,000 |
| Limit on total annual contributions for defined contribution (DC) retirement plans | $56,000 | $57,000 |
| Limit on annual benefit under a defined benefit (DB) plan | $225,000 | $230,000 |
| General limit on elective deferrals to 401(k), 403(b), 457(b) plans | $19,000 | $19,500 |
| Limit on catch-up contributions for individuals age 50 and over | $6,000 | $6,500 |
| Threshold for determining highly compensated employee (HCE) | $125,00 | $130,000 |
| Threshold for determining key employee in top-heavy plan | $180,000 | $185,000 |
| SIMPLE retirement plan deduction limit | $13,000 | $13,500 |
| SIMPLE retirement plan limit on catch-up contributions for individuals age 50 and over | $3,000 | $3,000 |
| Social Security Taxable Wage Base | $132,900 | $137,700 |
