IRS Releases Cost-of-Living Adjusted Limits for 2020

The Internal Revenue Service and Social Security Administration announced cost of living adjustments applicable to dollar limitations for qualified retirement plans, and other limits for tax year 2020. Many limits provided below changed from 2019.  The Social Security Wage base increased from $132,900 to $137,700. 403b limit changed from $18,500 in 2019 to $19,500.00 for 2020. The "catch-up" limit also increased.
 
The important limits are provided below: 
  • 401(k), 403(b) & 457(b) deferrals:  $19,500      
  • Catch-up 401(k), 403(b) & 457(b):  $6,500       
  • 415(c) Limit:  $57,000
  • Annual Compensation Limit:  $285,000     
  • HCE Compensation Limit:  $130,000     
  • IRAs for individuals age 50 & above:  $7,000                 
  • Social Security Taxable Wage Base:  $137,700 
The 2020 limits reflect issuance of IRS Notice 2019-59 (November 6, 2019) and Social Security Administration Fact Sheet (October 10, 2019).

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