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

November 6, 2019

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


$200,000 compensation limit 2019-$280,000


$160,000 defined benefit limit 2019-$225,000


$40,000 defined contribution limit 2019-$56,000


$80,000 definition of highly compensated employee 2019-$125,000


SIMPLE IRA deferral limit 2019-$13,000


Code Section 457 deferred compensation plan deferral limit 2019-$19,000


Code Section 414(v) catch-up contribution limit for employee deferrals 2019-$6,000


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.

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Mary Ellen Schill

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