Retirement Legislative and Administrative Guidelines

2019

Select Pension Plan Limits for 2020

The IRS announced 2020 retirement plan contribution limits -- employee 401(k) contribution limit increases to $19,500 for 2020 and IRA limit remains unchanged at $6,000. For people age 50 and over, the additional catch-up contribution limit increases to $6,500 for workplace plans and remain unchanged at $1,000 for IRA. Refer to chart for detailed description.

2020 Pension Plan Limits - Download PDF

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).

2018

Select Pension Plan Limits for 2019

The IRS announced 2019 retirement plan contribution limits – 401(k) contribution limit increases to $19,000 for 2019 and IRA limit increases to $6,000. For people age 50 and over, the catch-up contribution remains unchanged at $6,000 for workplace plans and $1,000 for IRAs. Refer to chart for detailed description of adjusted and unchanged limitations.

2019 Pension Plan Limits - Download PDF

Benefit Limit	2018	2019
IRC §415(b)(1)(A) Defined Benefit Dollar Limit for Plan Years Ending in	$220,000	$225,000¹
IRC §415(c)(1)(A) Defined Contribution Dollar Limit for Plan Years Ending in	$55,000	$56,000²
Elective Deferral Limit for 401(k), 403(b) and 457(b) Plans IRC §§402(g)(1), 457(e)(15)	$18,500	$19,000³
Catch-Up Limit for 401(k), 403(b) and 457(b) (gov. only) Plans (age 50+)	$6,000	$6,000⁴
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	$275,000	$280,000⁵
Highly Compensated Employee Definitional Limits IRC §414(q)(1)(B)	$120,000	$125,000⁶
ESOP Payout Limits IRC §409(o)(1)(C)(ii)	$220,000 $1,105,000	$225,000⁷$1,130,000⁸
Social Security Taxable Wage Base	$128,400	$132,900
Contribution Limit for SIMPLE IRC §408(p)(2)(E)	$12,500	$13,000⁹
Catch-Up Limits for SIMPLE 401(k) Plan (age 50+)	$3,000	$3,000¹⁰
Key Employee Officer Comp. IRC §416(i)(1)(A)(i)	$175,000	$180,000¹¹
Contribution Limit to an IRA	$5,500	$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 2019 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 2019 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 $500 increments

6 For determining HCE’s in 2019, use the 2018 Compensation ($120,000), 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).

2017

Select Pension Plan Limits for 2018

The Internal Revenue Service announced cost-of-living adjustments affecting dollar limitations for pension plans and other retirement-related items for tax year 2018. The contribution limit for employees who participate in 401(k), 403(b), most 457 plans, and the federal government’s Thrift Savings Plan is increased from $18,000 to $18,500. See below for more details.

Select Pension Plan Limits for 2018

Saver's Credit Limitations for 2018

IRS has announced increases to the adjusted gross income limitations for the Saver's Credit for tax year 2018: $63,000 for married couples filing jointly; $47,250 for heads of household; and $31,500 for singles, married filing separately or qualifying widow(er). See below for more details.

Saver's Credit Limitations for 2018

2016

Select Pension Plan Limits for 2017

The Internal Revenue Service announced cost-of-living adjustments affecting dollar limitations for pension plans and other retirement-related items for tax year 2017. Most of the limitations remain unchanged for 2017.

2017 Pension Plan Limits - October 27, 2016

Saver's Credit Limitations for 2017

IRS has announced the adjusted gross income limitations for the Saver's Credit for tax year 2017: $62,000 for married couples filing jointly; $46,500 for heads of household; and $31,000 for singles, married filing separately or qualifying widow(er).

Saver's Credit Limitations for 2017- October 27, 2016

2015

Select Pension Plan Limits for 2016

The Internal Revenue Service announced cost-of-living adjustments affecting dollar limitations for pension plans and other retirement-related items for tax year 2016. Most of the limitations remain unchanged for 2016.

2016 Pension Plan Limits - October 21, 2015

August 28, 2015

This release summarizes certain regulatory changes, updates, and guidance (including court decisions) published during the first half of 2015. Following is a list of the topics summarized, as well as the sections of this release containing the summaries:

Change to the timing requirement applicable to annual participant fee disclosures under ERISA §404(c)
Changes and modifications to correction options for plan errors under the Internal Revenue Services’ (“IRS’”) correction programs.
Re-release of proposed fiduciary regulations by the Department of Labor (“DOL”).
Guidance regarding hardship withdrawal and participant loan documentation.
Guidance regarding an on-going fiduciary duty to monitor plan investment alternatives.
Guidance regarding same-sex marriage.