Download as PDF
On November 6, 2019, the IRS announced cost of living adjustments changing dollar limitations for pension plans and other retirement-related items for the tax year 2020. Here are the highlights:
| 401k Plan Limits for Year | 2020 | 2019 | 2018 | 2017 | 2016 | 2015 | 2014 |
| 401k Elective Deferrals1 | $19,500 | $19,000 | $18,500 | $18,000 | $18,000 | $18,000 | $17,500 |
| Catch-Up Contribution Limit1 | $6,500 | $6,000 | $6,000 | $6,000 | $6,000 | $6,000 | $5,500 |
| Annual Defined Contribution Limit1 | $57,000 | $56,000 | $55,000 | $55,000 | $53,000 | $53,000 | $52,000 |
| Annual Compensation Limit1 | $285,000 | $280,000 | $275,000 | $270,000 | $265,000 | $265,000 | $260,000 |
| Highly Compensated Employees1 | $130,000 | $125,000 | $120,000 | $120,000 | $120,000 | $120,000 | $115,000 |
| Non-401k Related Limits | 2020 | 2019 | 2018 | 2017 | 2016 | 2015 | 2014 |
| 403(b)/457 Elective Deferrals1 | $19,500 | $19,000 | $18,500 | $18,000 | $18,000 | $18,000 | $17,500 |
| 403(b)/ 457 Catch-Up Contribution Limit | $6,500 | $6,000 | $6,000 | $6,000 | $6,000 | $6,000 | $5,500 |
| SIMPLE Employee Deferrals1 | $13,500 | $13,000 | $12,500 | $12,500 | $12,500 | $12,500 | $12,000 |
| SIMPLE Catch-Up Deferral1 | $3,000 | $3,000 | $3,000 | $3,000 | $3,000 | $3,000 | $2,500 |
| SEP Minimum Compensation1 | $600 | $600 | $600 | $600 | $600 | $600 | $550 |
| SEP Annual1 Compensation Limit1 | $285,000 | $280,000 | $275,000 | $270,000 | $265,000 | $265,000 | $260,000 |
| Social Security Wage Base2 | $137,700 | $132,900 | $128,400 | $127,200 | $118,500 | $118,500 | $117,000 |
As always, please feel free to contact the Financial Wellness Center if you have any questions.
1Internal Revenue Service, Notice 2019-59
2Social Security Administration