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.