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    Accounting For Your Prosperity

    IRS Announces 2020 Contribution and Benefit Limits

    Posted by Michelle Buckley on Nov 12, 2019 12:17:13 PM

    2016Retirement

    The IRS announced on November 6, that several contribution limits in qualified retirement plans will increase next year.

    These limits cover cost of living adjustments to a variety of retirement plan limitations.  The chart below provides a summary of the amounts for your convenience.

    2020 Retirement Plan Limits Summary

      2019 2020
    IRAs
    IRA Contribution Limit $6,000 $6,000
    IRA Catch-Up Contributions 1,000 1,000
    IRA AGI Deduction Phase-Out Starting at
    Joint Return $103,000 $104,000
    Single or Head of Household $64,000 $65,000
    SEP
    SEP Minimum Compensation 600 600
    SEP Maximum Contribution 56,000 57,000
    SEP Maximum Compensation 280,000 285,000
    SIMPLE Plans
    SIMPLE Maximum Contributions 13,000 13,500
    Catch-up Contributions 3,000 3,000
    401(k), 403(b), Profit-Sharing Plans, etc.
    Annual Compensation 280,000 285,000
    Elective Deferrals 19,000 19,500
    Catch-up Contributions 6,000 6,500
    Defined Contribution Limits 56,000 57,000
    ESOP Limits 1,130,000
    225,000
    1,150,000
    230,000
    Other
    HCE Threshold 125,000 130,000
    Defined Benefit Limits 225,000 230,000
    Key Employee 180,000 185,000
    457 Elective Deferrals 19,000 19,500
    Control Employee (board member or officer) 110,000 115,000
    Control Employee (compensation-based) 225,000 230,000
    Taxable Wage Base 132,900 137,700


    Interested in learning more about the 2020 retirement plan limits? Contact us here.

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    Topics: Benefit Plan Advising & Auditing

    Michelle Buckley

    Written by Michelle Buckley

    Michelle Buckley is a Vice President in Meaden & Moore’s Assurance Services Group with 23 years of public accounting experience.

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