Blue Ridge ESOP Associates Industry News

New Plan Limits for 2020

Posted by Dolores P. Lawrence, CPA, QKA

Dec 16, 2019 10:32:18 AM

New Plan Limits for 2020

The IRS has announced cost of living adjustments affecting qualified retirement plans.

Selected Limits

 

2020

2019

401(k) Elective Deferrals

$19,500

$19,000

401(k) Catch Up Deferrals

$6,500

$6,000

Annual Defined Contribution Limit (Section 415)*

$57,000

$56,000

Annual Compensation Limit **

$285,000

$280,000

Highly Compensated Employees

(look-back year calculation)**

$130,000

$125,000

Key Employee – Officer Threshold*

$185,000

$180,000

Social Security Wage Base

$137,700

$132,900

ESOP Threshold Balance for lengthening the 5-year installment period

$1,150,000

$1,130,000

Amount for lengthening the 5-year ESOP installment period

$230,000

$225,000


*Effective for limitation years ending in calendar year

**Effective for plan years beginning in the calendar year

Topics: IRS, Plan Limits