The IRS announced on November 6, that several contribution limits in qualified retirement plans will increase next year.
These limits cover cost of living adjustments to a variety of retirement plan limitations. The chart below provides a summary of the amounts for your convenience.
2020 Retirement Plan Limits Summary
| 2019 | 2020 | |
| IRAs | ||
| IRA Contribution Limit | $6,000 | $6,000 |
| IRA Catch-Up Contributions | 1,000 | 1,000 |
| IRA AGI Deduction Phase-Out Starting at | ||
| Joint Return | $103,000 | $104,000 |
| Single or Head of Household | $64,000 | $65,000 |
| SEP | ||
| SEP Minimum Compensation | 600 | 600 |
| SEP Maximum Contribution | 56,000 | 57,000 |
| SEP Maximum Compensation | 280,000 | 285,000 |
| SIMPLE Plans | ||
| SIMPLE Maximum Contributions | 13,000 | 13,500 |
| Catch-up Contributions | 3,000 | 3,000 |
| 401(k), 403(b), Profit-Sharing Plans, etc. | ||
| Annual Compensation | 280,000 | 285,000 |
| Elective Deferrals | 19,000 | 19,500 |
| Catch-up Contributions | 6,000 | 6,500 |
| Defined Contribution Limits | 56,000 | 57,000 |
| ESOP Limits | 1,130,000 225,000 |
1,150,000 230,000 |
| Other | ||
| HCE Threshold | 125,000 | 130,000 |
| Defined Benefit Limits | 225,000 | 230,000 |
| Key Employee | 180,000 | 185,000 |
| 457 Elective Deferrals | 19,000 | 19,500 |
| Control Employee (board member or officer) | 110,000 | 115,000 |
| Control Employee (compensation-based) | 225,000 | 230,000 |
| Taxable Wage Base | 132,900 | 137,700 |
Interested in learning more about the 2020 retirement plan limits? Contact us here.
