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New Retirement Plan Contribution Limits for 2020
November 08, 2019401k contribution limits have changed for the New Year. Take a look at some adjustments to phase-out ranges and contribution limits for 2020.
The Internal Revenue Service has issued the annual cost of living adjustments for 401(k) and IRA contributions, pension plans, and other retirement related matters.
The limits
Individual Retirement Account Limits 2020 (Roth and traditional)
CONTRIBUTION LIMITS | 2019 | 2018 | 2017 |
|---|---|---|---|
IRA Contribution Limit | $6,000 | $6,000 | $5,500 |
IRA Catch-Up Contributions | $1,000 | $1,000 | $1,000 |
401(k), 457 and 403(b)
CONTRIBUTION LIMITS | 2020 | 2019 | 2018 |
|---|---|---|---|
401(k), 457 and 403(b) maximum annual elective deferral limit | $19,500 | $19,000 | $18,500 |
401(k), 457 and 403(b) catch up contribution limit for those 50 and over | $6,500 | $6,000 | $6,000 |
You can make contributions up to the IRS contribution limits noted above or up to $285,000 in 2020—here’s how that number has changed through the years.
2020 | 2019 | 2018 | |
|---|---|---|---|
Annual Compensation Limit | $285,000 | $280,000 | $275,000 |
SIMPLE- Savings Incentive Match Plan for Employees
CONTRIBUTION LIMITS | 2020 | 2019 | 2018 |
|---|---|---|---|
SIMPLE employee deferrals | $13,500 | $13,000 | $12,500 |
SIMPLE catch up deferrals | $3,000 | $3,000 | $3,000 |
Simplified Employee Pension (SEP)
CONTRIBUTION LIMITS | 2020 | 2019 | 2018 |
|---|---|---|---|
SEP annual compensation limit | $285,000 | $280,000 | $275,000 |
SEP minimum compensation | $600 | $600 | $600 |
| SEP maximum contribution | $57,000 | $56,000 | $55,000 |
Phase-out ranges for 2020:
Traditional IRA MAGI Limits | 2020 | 2019 | 2018 |
|---|---|---|---|
Married filing jointly; a spouse who participates in an employer-sponsored plan | $104,000- $124,000 | $103,000- $123,000 | $101,000- $121,000 |
Married filing jointly; a spouse who does not participate in an employer sponsored plan | $196,000- $206,000 | $193,000- $203,000 | $189,000- $199,000 |
| Single or Head of Household | $65,000- $75,000 | $64,000- $74,000 | $63,000- $73,000 |
For Roth IRAs, if your MAGI falls within the applicable range, you can make a partial contribution, but if it exceeds the top of the range, you are not allowed to make a contribution.
Roth IRA MAGI Limits | 2020 | 2019 | 2018 |
|---|---|---|---|
Married filing jointly | $196,000- $206,000 | $193,000- $203,000 | $189,000- $199,000 |
Single or Head of Household | $124,000- $139,000 | $122,000- $137,000 | $120,000- $135,000 |
What is the social security wage base for 2020?
2020 | 2019 | 2018 | |
|---|---|---|---|
Social Security Wage Base | $137,700 | $132,900 | $128,700 |
Interested in learning more about tax-advantaged retirement saving strategies?
Contact our Tax Team for more information.
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