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.