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




401(k) Elective Deferrals



401(k) Catch Up Deferrals



Annual Defined Contribution Limit (Section 415)*



Annual Compensation Limit **



Highly Compensated Employees

(look-back year calculation)**



Key Employee – Officer Threshold*



Social Security Wage Base



ESOP Threshold Balance for lengthening the 5-year installment period



Amount for lengthening the 5-year ESOP installment period



*Effective for limitation years ending in calendar year

**Effective for plan years beginning in the calendar year

Topics: IRS, Plan Limits

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Blue Ridge ESOP Associates can provide everything you need to administer your ESOP, 401(k) or combination ESOP/401(k) plan. Our full service outsourcing, which can include participant on-line services, provides worry-free  assistance for your HR or Benefits staff, leaving them free to concentrate on other responsibilities.

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