Click here for PDF

The Internal Revenue Service announced the 2020 cost-of-living adjustments to the dollar limitations for qualified retirement plans and other benefits, and the Social Security Administration announced its own cost-of-living adjustments for 2020.  The elective deferral contribution limit for 401(k), 403(b) and 457(b) plans will increase to $19,500 and the dollar limit for catch-up contributions (if age 50 or older) will increase to $6,500.  Other limits, such as the annual compensation limit under 401(a)(17), the limit used in the definition of key employee and the maximum annual contribution limit under Code Section 415, also will increase in 2020.



  2020 Limits 2019 Limits
401(k)/403(b)/457(b) Elective Deferrals $19,500 $19,000
Catch-Up Contribution (plans other than SIMPLE plans) $6,500 $6,000
SIMPLE Plan Employee Deferrals $13,500 $13,000
SIMPLE Plan Catch-Up Contributions $3,000 $3,000
Plan Maximum Annual Contribution – Defined Contribution Plans (Section 415(c)) $57,000 $56,000
Maximum Annual Benefit – Defined Benefit Plans (Section 415(b)) $230,000 $225,000
Compensation Limit under Section 401(a)(17) $285,000 $280,000
Highly Compensated Employee Definition under Section 414(q) $130,000 $125,000
Key Employees Officer Compensation for Top-Heavy Plans $185,000 $180,000
ESOP limit for determining the maximum account balance subject to the 5-year distribution limit $1,150,000 $1,130,000
ESOP dollar amount used for determining the lengthening of the 5-year distribution period $230,000 $225,000
Social Security (FICA) Wage Base $137,700 $132,900




Health Savings Account and High Deductible Health Plan Limits

Earlier this year, the IRS announced the inflation-adjusted amounts for health savings account and high-deductible health plans for 2020.  The HSA limit for self-only/family coverage will increase to $3,550 and $7,100, respectively for 2020. The maximum annual out-of-pocket expense limits for high deductible health plans for both self-only and family coverage and the minimum annual deductible will increase in 2020.


Health Savings Accounts/HDHP Limits

  2020 Limits 2019 Limits
HSA Contribution — Annual Contribution Limit
Self-Only Coverage $3,550 $3,500
Family Coverage $7,100 $7,000
Catch-Up Contributions (age 55 or older) $1,000 $1,000
High Deductible Health Plan – Minimum Annual Deductible
Self-Only Coverage $1,400 $1,350
Family Coverage $2,800 $2,700
High Deductible Health Plan – Maximum Out of Pocket Limit
Self-Only Coverage $6,900 $6,750
Family Coverage $13,800 $13,500