Please be advised that contacting Ruder Ware by e-mail does not create an attorney-client relationship. If you contact the firm by e-mail with respect to a matter where the firm does not already represent you, any information which you disclose to us may not be regarded as privileged or confidential.


Accept   Cancel

Please be advised that contacting Ruder Ware by e-mail does not create an attorney-client relationship. If you contact the firm by e-mail with respect to a matter where the firm does not already represent you, any information which you disclose to us may not be regarded as privileged or confidential.


Accept   Cancel

PAL Login

linkedin.jpgyoutube.jpgvimeo.jpgtwitter_off.png View Ruder Ware

Employment Blog

2020 Qualified Plan Cost of Living Increases, 2020 Social Security Taxable Wage Base

Authored by Mary Ellen Schill
Mary Ellen Schill
Director
Attorney
Wausau Office

Posted on November 6, 2019
Filed under Employment

On November 6, 2019 the Internal Revenue Service announced the cost-of-living adjustments for the various qualified retirement plan limits. All of the limits shown below have increased from last year.

Qualified Plan Limit

Cost-of-Living Adjustments

401(k) and 403(b) elective deferral limit

2019-$19,000

2020-$19,500

$200,000 compensation limit

2019-$280,000

2020-$285,000

$160,000 defined benefit limit

2019-$225,000

2020-$230,000

$40,000 defined contribution limit

2019-$56,000

2020-$57,000

$80,000 definition of highly compensated employee

2019-$125,000

2020-$130,000

SIMPLE IRA deferral limit

2019-$13,000

2020-$13,500

Code Section 457 deferred compensation plan deferral limit

2019-$19,000

2020-$19,500

Code Section 414(v) catch-up contribution limit for employee deferrals

2019-$6,000

2020-$6,500

 

All of the above are plan year limits (i.e., for the plan year which begins in 2020), with the exception of the Code Section 401(k) and Code Section 403(b) elective deferral limit, which is a calendar year limitation.

In addition, the Department of Health and Human Services has set the maximum taxable wages for the OASDI portion of the social security tax at $137,700 for 2020, which is an increase from the 2019 limit of $132,900.