Publications
Professionals
Practices & Industries
2020 Benefit Limits Announced
Hodgson Russ Employee Benefits Newsletter
December 3, 2019
The Internal Revenue Service has announced the cost of living adjustments dollar limits applicable to benefit plans (see IRS Notice 2019-59). The key limits are listed below:
| 2019 Limit | 2020 Limit | |
| 401(k)/403(b)/457 Plan Maximum Elective Deferral | $19,000 | $19,500 |
| 401(k)/403(b)/457 Catch-Up | $6,000 | $6,500 |
| Defined Contribution Maximum Annual Addition | $56,000 | $57,000 |
| Defined Benefit Maximum Annual Pension | $225,000 | $230,000 |
| Qualified Plan Maximum Compensation Limit | $280,000 | $285,000 |
| Highly Compensated Employee | $125,000 | $130,000 |
| IRA Limit | $6,000 | $6,000 |
| IRA Catch-Up | $1,000 | $1,000 |
| SIMPLE Limit | $13,000 | $13,500 |
| SIMPLE Catch-Up | $3,000 | $3,000 |
In addition, the Social Security wage base for 2020 will increase from $132,900 for 2019 to $137,700.