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IRS Announces 2020 Contribution and Benefit Limits for Retirement Plans
The IRS has announced the 2020 cost-of-living adjustments to the dollar limitations for defined benefit and defined contribution plans. Here is a comparison of the 2019 limits and the new limits effective January 1, 2020:
Limit |
2019 |
2020 |
Defined Contribution Plans
(Including employee deferral and employer contributions) |
$56,000 |
$57,000 |
401(k) and 403(b) Elective Deferrals
(always on a calendar-year basis) |
$19,000 |
$19,500 |
457(b) Plans
(Including employee deferral and employer contributions) |
$19,000 |
$19,500 |
| 15-Year Catch-Up for 457(b) Governmental Plans |
$3,000 |
$3,000 |
Catch-Up Contribution
(age 50 or over) Not available in non-governmental 457(b) Plans |
$6,000 |
$6,500 |
Annual Compensation Limit
(100% of compensation if less than dollar limit – limits different for Puerto Rico) |
$280,000 |
$285,000 |
| Highly Compensated Employee |
$125,000 |
$130,000 |
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