Benefit Limit
| 2019
| 2020
|
IRC §415(b)(1)(A) Defined Benefit Dollar Limit for Plan Years Ending in
| $225,000
| $230,0001
|
IRC §415(c)(1)(A) Defined Contribution Dollar Limit for Plan Years Ending in
| $56,000 | $57,0002
|
Elective Deferral Limit for 401(k), 403(b) and 457(b) Plans
IRC §§402(g)(1), 457(e)(15) | $19,000
| $19,5003 |
Catch-Up Limit for 401(k), 403(b) and 457(b) (gov. only) Plans (age 50+)
| $6,000
| $6,5004 |
Minimum Compensation Amount for SEPs (Non-SIMPLE)
IRC §408(k)(2)(C) | $600
| $600 |
Maximum Compensation Limit for SEPs - IRC §§408(k)(3)(C), 408(k)(6)(D)(ii), Qualified Plans, IRC §§401(a)(17), 404(l) Plan Years beginning in | $280,000 | $285,0005 |
Highly Compensated Employee Definitional Limits
IRC §414(q)(1)(B) | $125,000 | $130,0006 |
ESOP Payout Limits
IRC §409(o)(1)(C)(ii) | $225,000
$1,130,000 | $230,0007
$1,150,0008 |
Social Security Taxable Wage Base
| $132,900
| $137,700 |
Contribution Limit for SIMPLE
IRC §408(p)(2)(E) | $13,000
| $13,5009 |
Catch-Up Limits for SIMPLE
401(k) Plan (age 50+) | $3,000 | $3,00010
|
Key Employee Officer Comp.
IRC §416(i)(1)(A)(i) | $180,000 | $185,00011
|
Contribution Limit to an IRA
| $6,000 | $6,000 |
Catch-Up Limit to an IRA (age 50+)
| $1,000
| $1,000 |
Legend:
1 The benefit limit is the lesser of (i) the 2020 dollar limit, or (ii) 100% of the employee’s average compensation for his high 3 years.
2 The benefit limit is the lesser of (i) the 2020 dollar limit, or (ii) 100% of employee compensation. NOTE: 1. The 100% is reduced to 25% for SEPs by the contribution limitations of IRC §402(h)(2)(A), and 2. SIMPLEs are not subject
to IRC §415.
3 COLA increase, if any, is in $500 increments.
4 COLA increase, if any, is in $500 increments.
5 COLA increase, if any, is in $5,000 increments.
6 For determining HCE’s in 2020, use the 2019 Compensation ($125,000), due to the look-back year rule.
7 Amount used to determine the lengthening of the 5-year distribution period.
8 Amount used for determining the maximum account balance in an ESOP subject to a 5-year distribution period.
9 COLA increase, if any, is in $500 increments.
10 COLA increase, if any, is in $500 increments.
11 Compensation for plan year ending on the determination date (last day of the prior plan year).