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. |