The following limits remain unadjusted for 2020:

  • The limit on annual contributions to an IRA remains unchanged at $6,000.
  • The additional catch-up contribution limit to an IRA for individuals age 50 and over remains at $1,000.
  • The minimum compensation amount under IRS Section 408(k)(2)(C) for simplified employee pensions (SEPs) remains at $600.
  • The limitation concerning the qualified gratuitous transfer of qualified employer securities to an employee stock ownership plan under IRS Section 664(g)(7) remains unchanged at $50,000.


For more information about the 2020 IRS limitations on retirement plans, you can read the full notice by clicking here .  

Your payroll service providers, record keeping service providers and third party administrators should all be updating their systems accordingly for the 2020 plan year to ensure their clients are getting the maximum value and their plans continue to meet their goals and objectives.

 As always, i f you have any questions, please reach out to a QRGA team member by calling (781) 551-0040 and be sure to follow us on Facebook and LinkedIn so we can continue to keep you up-to-date on news and information that can help you be successful. For more information and to read our latest newsletter, be sure to visit our website by clicking the green button below.