November 2019
Special Update
The Internal Revenue Service has announced
2020 Cost-of-Living Adjustments for Retirement Plans
  • The elective deferral limit for 401(k), 403(b) and 457(b) plans increases to $19,500. The catch-up contribution limit increases to $6,500.
  • The compensation limit (the maximum amount of compensation that can be considered for plan purposes) increases to $285,000.
  • The annual addition contribution limit (the maximum amount of combined employee and employer contributions that can be contributed to a participant’s account) for individuals in defined contribution plans, such as 401(k) and 403(b)plans, increases to $57,000.This amount does not include catch-up contributions.
  • The compensation threshold for determining highly compensated employees for purposes of nondiscrimination testing increases to $130,000.
  • The compensation threshold for determining a key employee by officer status for purposes of top heavy testing increases to $185,000.
  • The Social Security Wage Base increases to $137,700.

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