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IRS Announces 2020 Retirement Plan Limits

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

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