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2020 Contribution Limits

The IRS has announced Cost-of-Living adjustments for contribution limits to 401(k)s and other qualified plans for 2020. Contributions to IRAs will remain the same. See the chart below to see how the changes will affect you.

Type of Limitation 2020 2019
401(k), 457 and 403(b) maximum annual elective deferral limit $19,500 $19,000
401(k), 403(b), or 457 plans catch-up contribution limit for individuals aged 50 or over $6,500 $6,000
Defined contribution plan annual limitLesser of : $57,000, or 100% of compensationLesser of : $56,000, or 100% of compensation
SIMPLE maximum annual elective deferral limit$13,500$13,000
SIMPLE 401(k) or SIMPLE IRA catch-up contribution limit for individuals aged 50 and over$3,000$3,000
Traditional IRA contribution limitLesser of: $6,000 or 100% of compensationLesser of: $6,000 or 100% of compensation
Traditional IRA catch-up contribution limit for individuals aged 50 or over$1,000$1,000
Defined Benefit plan for annual limit under section 415$230,000$225,000
Annual allowable compensation limit for deduction, benefit and contribution purposes$285,000$280,000
Highly Compensated Employee$130,000$125,000
Key Employee/officer in a top heavy plan$185,000$180,000
Income subject to Social Security tax$137,700$132,900

For full details on plan limits for 2020, visit the IRS Website.

Source: IRS.gov

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