2020 End of Year Plan Sponsor “To Do” List (Part 2) Annual Cost of Living Adjustments

Snell & Wilmer

As 2020 comes to an end, we are happy to present our traditional End of Year Plan Sponsor “To Do” Lists. We are publishing our “To Do” Lists in four separate Employee Benefits Updates. Part 1 covered year-end health and welfare plan issues. This Part 2 highlights annual cost-of-living increases. Parts 3 and 4 will cover qualified plan and executive compensation issues. Each Employee Benefits Update provides a “To Do” List of items to consider taking action on or before the end of 2020 or in early 2021. As always, we appreciate your relationship with Snell & Wilmer and hope that these “To Do” Lists can help focus your efforts over the next few months.

Part 2 - Annual Cost of Living Adjustments “To Do” List

Qualified Retirement Plan Dollar Limits
2019
2020
2021
Limit on Section 401(k) deferrals
(Section 402(g))
$19,000
$19,500
$19,500
Dollar limitation for catch-up contributions
(Section 414(v)(2)(B)(i))
$6,000
$6,500
$6,500
Limit on deferrals for government and tax-exempt organization deferred compensation plans (Section 457(e)(15))
$19,000
$19,500
$19,500
Annual benefit limitation for a defined benefit plan
(Section 415(b)(1)(A))
$225,000
$230,000
$230,000
Limitation on annual contributions to a defined contribution plan
(Section 415(c)(1)(A))
$56,000
$57,000
$58,000
Limitation on compensation that may be considered by qualified retirement plans
(Section 401(a)(17))
$280,000
$285,000
$290,000
Dollar amount for the definition of highly compensated employee
(Section 414(q)(1)(B))
$125,000
$130,000
$130,000
Dollar amount for the definition of a key employee in a top-heavy plan
(Section 416(i)(1)(A)(i))
$180,000
$185,000
$185,000
Dollar amount for determining the maximum account balance in an ESOP subject to a five-year distribution period
(Section 409(o)(1)(C)(ii))
$1,130,000
$1,150,000
$1,165,000
SIMPLE retirement account limitation (Section 408(p)(2)(E))
$13,000
$13,500
$13,500
Social Security Taxable
Wage Base
$132,900
$137,700
$142,800
Health & Welfare Plan Dollar Limits
Annual Cost Sharing Limit
(self-only coverage)
$7,900
$8,150
$8,550
Annual Cost Sharing Limit
(other than self-only coverage)
$15,800
$16,300
$17,100
HDHP Out-of-Pocket Maximum
(self-only coverage)
$6,750
$6,900
$7,000
HDHP Out-of-Pocket Maximum
(family coverage)
$13,500
$13,800
$14,000
Annual HDHP Deductible
(self-only coverage)
Not less than $1,350
Not less than $1,400
Not less than $1,400
Annual HDHP Deductible
(family coverage)
Not less than $2,700
Not less than $2,800
Not less than $2,800
Maximum Annual HSA Contributions
(self-only coverage)
$3,500
$3,550
$3,600
Maximum Annual HSA Contributions (family coverage)
$7,000
$7,100
$7,200
Maximum HSA Catch-Up Contribution
$1,000
$1,000
$1,000
Health Flexible Spending Account Maximum
$2,700
$2,750
$2,750*
* Projected as of October 27, 2020

DISCLAIMER: Because of the generality of this update, the information provided herein may not be applicable in all situations and should not be acted upon without specific legal advice based on particular situations.

© Snell & Wilmer | Attorney Advertising

Written by:

Snell & Wilmer
Contact
more
less

Snell & Wilmer on:

Reporters on Deadline

"My best business intelligence, in one easy email…"

Your first step to building a free, personalized, morning email brief covering pertinent authors and topics on JD Supra:
*By using the service, you signify your acceptance of JD Supra's Privacy Policy.
Custom Email Digest
- hide
- hide

This website uses cookies to improve user experience, track anonymous site usage, store authorization tokens and permit sharing on social media networks. By continuing to browse this website you accept the use of cookies. Click here to read more about how we use cookies.