The IRS has released the Annual Plan Limitations for 2020 for defined contribution and defined benefit plans. The 403(b), 457(b), & 401(k) elective deferral limits, catch-up limits and other key limits for 2020 have changed and are listed below.
| 2019 Limits | 2020 Limits | |
|---|---|---|
| Employee Elective Deferrals to the 403(b), 457(b) and 401(k) Plans | $19,000 | $19,500 |
| Catch-Up Contributions (Age 50 or older) to the 403(b), 457(b) and 401(k) Plans | $6,000 | $6,500 |
| Annual Addition Dollar Maximum (applies to Employer-paid 401(a), 403(b) and 401(k) Plans) | $56,000 | $57,000 |
| Defined Benefit Dollar Maximum | $225,000 | $230,000 |
| Highly Compensated Employee Threshold (applies mainly to 401(k) Plans) | $125,000 | $130,000 |
| Key Employee Threshold (applies mainly to 401(k) Plans) | $180,000 | $185,000 |
| Annual Compensation (applies to almost all retirement plans) | $280,000 | $285,000 |
| Annual IRA contribution (unchanged) | $6,000 | $6,000 |
| IRA catch-up contributions (age 50 and older; unchanged) | $1,000 | $1,000 |
If you have any questions or would like clarification on any of these contribution limits, please submit a message below:
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