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IRS announces key retirement plan limits for 2020

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The IRS has issued Notice 2019-59 announcing the retirement plan limits for 2020.

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Retirement plan limits

The table below lists the key 2020 limits side by side with those in effect for 2019 — all limits shown have increased from 2019 to 2020.

2020

2019

401(k)/403(b) elective deferral maximum

$19,500

$19,000

§415 defined benefit dollar maximum

$230,000

$225,000

§415 defined contribution annual addition maximum

$57,000

$56,000

§457(b) nonqualified deferred compensation limit

$19,500

$19,000

§401(a)(17) annual compensation limit

$285,000

$280,000

§414(q) highly compensated employee limit

$130,000

$125,000

§414(v) catch-up contribution limit

$6,500

$6,000

§416(i) top-heavy officer limit

$185,000

$180,000

In closing

Our For Your Reference, a wallet-sized booklet showing retirement plan and other benefit limits, as well as various key Social Security and Medicare figures, will be available shortly from your consultant.


Volume 42 | Issue 94

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