2020 Plan Limits

The IRS has released the 2020 Plan Limits. Below are a few highlights of the changes. Visit https://www.irs.gov/newsroom/401k-contribution-limit-increases-to-19500-for-2020-catch-up-limit-rises-to-6500 for the full release.

• The annual benefit limit under a defined benefit plan under § 415(b)(1)(A) is increased from $225,000 to $230,000.
• The limitation for defined contribution plans under § 415(c)(1)(A) is increased in 2020 from $56,000 to $57,000.
• The contribution limit for an employee who participate in their employer’s 401(k) has increase from $19,000 to $19,500 for 2020, and the catch-up limit for employees age 50 and over has increase from $6,000 to $6,500.