Benefit Plan Limits

2020 EMPLOYEE BENEFIT PLAN LIMITS

The IRS recently released employee benefit plan limits for 2020.  There are several changes for 2020.

PLAN LIMITATIONS 2018 2019 2020
Annual Compensation Limit $275,000 $280,000 $285,000
Defined Contribution Maximum Annual Contribution $55,000 $56,000 $57,000
Annual §401(k) Employee Deferral Limit $18,500 $19,000 $19,500
Age 50 Catch-up Contributions to §401(k) Plan $6,000 $6,000 $6,500
Highly Compensated Employee Threshold $120,000 $125,000 $130,000
Income subject to Social Security Wage Base $128,400 $132,900 $137,700

 

Please share this information with your payroll personnel so they are aware of these limits.