The Internal Revenue Service has announced the cost of living adjustments dollar limits applicable to benefit plans (see IRS Notice 2019-59). The key limits are listed below:
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2019 Limit
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2020 Limit
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401(k)/403(b)/457 Plan Maximum Elective Deferral
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$19,000
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$19,500
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401(k)/403(b)/457 Catch-Up
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$6,000
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$6,500
|
|
Defined Contribution Maximum Annual Addition
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$56,000
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$57,000
|
|
Defined Benefit Maximum Annual Pension
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$225,000
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$230,000
|
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Qualified Plan Maximum Compensation Limit
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$280,000
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$285,000
|
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Highly Compensated Employee
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$125,000
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$130,000
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IRA Limit
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$6,000
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$6,000
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IRA Catch-Up
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$1,000
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$1,000
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|
SIMPLE Limit
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$13,000
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$13,500
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SIMPLE Catch-Up
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$3,000
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$3,000
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In addition, the Social Security wage base for 2020 will increase from $132,900 for 2019 to $137,700.
