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2020 Contribution Limits for Company-Sponsored Retirement Plans

November 06, 2019

The IRS has released new guidelines for the 2020 Contribution Limits for company-sponsored retirement plans and they’ve increased! If you’re not sure what they are, Leading Retirement Solutions has you covered.

Retirement Plan Maximum Contributions:

IRS guidelines detail the maximum income that an employee (including company owners) may contribute to a company-sponsored retirement plan as well as the maximum contributions an employee (including company owners) may receive from the business.

Contribution Highlights for 2020:

  • $19,500 – The employee contribution limit for employees who participate in 401(k), 403(b), most 457 plans and the federal government’s Thrift Savings Plan.
  • $6,500 – The catch-up contribution limit for employees aged 50 and over who participate in 401(k), 403(b), most 457 plans and the federal government’s Thrift Savings Plan.
  • $13,500 – The limitation regarding SIMPLE retirement accounts for 2020, up from $13,000 for 2019.

 

 

2020

2019

2018

401(k), 403(b), Profit-Sharing Plans, etc.

Annual Compensation

285,000 

280,000 

275,000 

Elective Deferrals

19,500

19,000

18,500

Catch-up Contributions

6,500

6,000

6,000

Defined Contribution Limits

57,000

56,000

55,000

ESOP Limits

1,150,000  

1,130,000  

1,105,000  

230,000

225,000

220,000

Other

HCE Threshold

130,000

125,000

120,000

Defined Benefit Limits

230,00

225,000

220,000

Key Employee

185,000

180,000

175,000

457 Elective Deferrals

19,500

19,000

18,500

Control Employee (board member or officer)

115,000

110,000

110,000

Control Employee (compensation-based)

230,000

225,000

220,000

IRAs

IRA Contribution Limit

6,000

6,000

5,500

IRA Catch-Up Contributions

1,000

1,000

1,000

IRA AGI Deduction Phase-out Starting at

Joint Return

104,000

103,000

101,000

Single or Head of Household

65,000

64,000

63,000

SEP

SEP Minimum Compensation

600

600

600

SEP Maximum Contribution

57,000

56,000

55,000

SEP Maximum Compensation

285,000

280,000

275,000

SIMPLE Plans

SIMPLE Maximum Contributions

13,500

13,000

12,500

Catch-up Contributions

3,000

3,000

3,000

Additional information can be found on the IRS website.

For more tips and information regarding retirement plans, contact us.

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