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Retirement Plan Limits for 2020

The Internal Revenue Code provides for dollar limitations on benefits and contributions under qualified retirement plans. IRC Section 415 requires the limits to be adjusted annually for cost-of-living increases.

Description of Limit 2019 2020

401(k) Elective Deferrals  $ 19,000 $ 19,500
403(b)/457 Elective Deferrals $ 19,000 $ 19,500
Annual Compensation Limits $ 280,000 $ 285,000
Annual Defined Contribution Limits $ 56,000 $ 57,000
Catch-up Contributions $ 6,000 $ 6,500
Highly Compensated Employees $ 125,000 $ 120,000
Social Security Wage Base $ 132,900 $ 128,400
Annual Benefit Limit (Defined Benefit Plans) $ 225,000 $ 220,000

Source: Internal Revenue Service