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IRS Releases 2020 Contribution Limits

November 06, 2019
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On 11/6/2019, the IRS officially released 2020 401(k), 403(b) and most 457 plan contribution limits. These limits largely mirrored industry predictions that have come out over the past few months. Employees will be able to contribute a maximum of $19,500 into those retirement plans next year, up from $19,000 this year. That increase also applies to the federal government’s Thrift Savings Plan. The catch contributions were also increased  for employees aged 50 and older who participate in all of these plans. It goes from $6,000 to $6,500.

  Plan Type

2020

2019 

  401(k), 403(b) & 457 Plans

       Elective Deferrals

$19,500

$19,000

       Catch-Up Contribution Limits

$6,500

$6,000

       Defined Contribution Limits

$57,000

$56,000

       Annual Compensation

$285,000

$280,000

  IRAs

       Contribution Limit

$6,000

$6,000

       Catch-Up Contributions (age 50+)

$1,000

$1,000

  IRA AGI Deduction Phase-Out Start at

       Joint Return

$104,000

$103,000

       Single or Head of Household

$65,000

$64,000

  SEP

       Minimum Compensation

$600

$600

       Maximum Compensation

$285,000

$280,000

  SIMPLE Plans

       Maximum Contribution

$13,500

$13,000

       Catch-Up Contributions

$3,000

$3,000

Income ranges for eligibility have all increased by the COLA and full details can be found on the IRS website . More Employer Plan information can be found at https://www.iisfinancial.com/business-owners under Employer Retirement Plans.