The tax law places limits on the dollar amount of contributions to retirement plans and IRAs and the amount of benefits under a pension plan. IRC Section 415 requires the limits to be adjusted annually for cost-of-living increases.
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2020 |
2019 | 2018 |
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|
IRAs |
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| IRA Contribution Limit |
$6,000 |
$6,000 |
$5,500 |
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| IRA Catch-Up Contributions |
1,000 |
1,000 | 1,000 | ||
|
IRA AGI Deduction Phase-out Starting at |
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| Joint Return |
104,000 |
103,000 |
101,000 |
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| Single or Head of Household |
65,000 |
64,000 |
63,000 |
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|
SEP |
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| SEP Minimum Compensation |
600 |
600 |
600 |
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| SEP Maximum Contribution |
57,000 |
56,000 |
55,000 |
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| SEP Maximum Compensation |
285,000 |
280,000 |
275,000 |
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|
SIMPLE Plans |
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| SIMPLE Maximum Contributions |
13,500 |
13,000 |
12,500 |
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| Catch-up Contributions |
3,000 |
3,000 |
3,000 |
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|
401(k), 403(b), Profit-Sharing Plans, etc. |
|||||
| Annual Compensation |
285,000 |
280,000 |
275,000 |
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| Elective Deferrals |
19,500 |
19,000 |
18,500 |
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| Catch-up Contributions |
6,500 |
6,000 |
6,000 |
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| Defined Contribution Limits |
57,000 |
56,000 |
55,000 |
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| ESOP Limits |
1,150,000 230,000 |
1,130,000
225,000 |
1,105,000 220,000 |
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|
Other |
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| HCE Threshold |
130,000 |
125,000 |
120,000 |
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| Defined Benefit Limits |
230,000 |
225,000 |
220,000 |
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| Key Employee |
185,000 |
180,000 |
175,000 |
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| 457 Elective Deferrals |
19,500 |
19,000 |
18,500 |
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| Control Employee (board member or officer) |
115,000 |
110,000 |
105,000 |
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| Control Employee (compensation-based) |
230,000 |
225,000 |
220,000 |
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| Taxable Wage Base |
137,700 |
132,900 |
128,400 |
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