The Internal Revenue Service released the cost-of-living adjusted qualified retirement plan limitations effective January 1, 2020.  For ease of reference and comparison to prior years, we have placed the adjusted limitations in the table below.  For more information, refer to the Internal Revenue Service’s news release and Notice 2019-59 and to the Social Security Administration’s October 10, 2019, fact sheet.

Qualified Plan Limits

Type of Limitation 2020 2019 2018 2017 2016 Elective Deferrals (401(k), 403(b), 457(b)(2) and 457(c)(1)) $19,500 $19,000 $18,500 $18,000 $18,000 Section 414(v) Catch-Up Deferrals to 401(k), 403(b), 457(b), or SARSEP Plans (457(b)(3) and 402(g) provide separate catch-up rules to be considered as appropriate) $6,500 $6,000 $6,000 $6,000 $6,000 SIMPLE Salary Deferral $13,500 $13,000 $12,500 $12,500 $12,500 SIMPLE 401(k) or regular SIMPLE plans, Catch-Up Deferrals $3,000 $3,000 $3,000 $3,000 $3,000 415 limit for Defined Benefit Plans $230,000 $225,000 $220,000 $215,000 $210,000 415 limit for Defined Contribution Plans $57,000 $56,000 $55,000 $54,000 $53,000 Annual Compensation Limit $285,000 $280,000 $275,000 $270,000 $265,000 Annual Compensation Limit for Grandfathered Participants in Governmental Plans Which Followed 401(a)(17) Limits (With Indexing) on July 1, 1993  

$425,000  

$415,000  

$405,000  

$400,000  

$395,000 Highly Compensated Employee 414(q)(1)(B) $130,000 $125,000 $120,000 $120,000 $120,000 Key employee in top heavy plan (officer) $185,000 $180,000 $175,000 $175,000 $170,000 Tax Credit ESOP Maximum balance $1,150,000 $1,130,000 $1,105,000 $1,080,000 $1,070,000 Amount for Lengthening of 5-Year ESOP Period $230,000 $225,000 $220,000 $215,000 $210,000 Taxable Wage Base $137,700 $132,900 $128,400 $127,200 $118,500