New IRS Retirement Plan Limits for 2020

11/8/2019

The Internal Revenue Service just announced the new (increased) retirement plan limits for 2020, as follows:

LIMIT
2020
2019
 Maximum Annual Pension Benefit
$230,000
$225,000
 Maximum Contribution to a Defined Contribution Plan
 $57,000  $56,000
 Maximum Elective Deferrals for 401(k), 403(b), and 457 Plans
 $19,500  $19,000
 Qualified Plan Compensation Limit
 $285,000  $280,000

It is worth noting that the Social Security Taxable Wage Base has also increased from $132,900 in 2019 to $137,700 for 2020.

If you have questions about these adjustments or the application of the limits generally, please contact Kathy Aslinger or Ashley Trotto at (865) 546-7311.

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