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
