Contribution and Benefit Limits
For 401(k) and other Qualified Plans
| Type of Limitation | 2020 | 2019 |
| 401(k), 457 and 403(b) maximum annual elective deferral limit | $19,500 | $19,000 |
| 401(k), 403(b), or 457 plans catch-up contribution limit for individuals aged 50 or over | $6,500 | $6,000 |
| Defined contribution plan annual limit | Lesser of: | Lesser of: |
| $57,000, or 100% of compensation | $56,000, or 100% of compensation | |
| SIMPLE maximum annual elective deferral limit | $13,500 | $13,000 |
| SIMPLE 401(k) or SIMPLE IRA catch-up contribution limit for individuals aged 50 or over | $3,000 | $3,000 |
| Traditional IRA contribution limit | Lesser of: | Lesser of: |
| $6,000, or 100% of compensation | $6,000, or 100% of compensation | |
| Traditional IRA catch-up contribution limit for individuals aged 50 or over | $1,000 | $1,000 |
| Defined Benefit plan annual limit under section 415 | $230,000 | $225,000 |
| Annual allowable compensation limit
for deduction, benefit and contribution purposes |
$285,000 | $280,000 |
| Highly Compensated Employee | $130,000* | $125,000* |
| Key Employee/officer in a top heavy plan | $185,000 | $180,000 |
| Income subject to Social Security tax | $137,700 | $132,900 |
For full details on the pension plan limits for 2020, visit the IRS Website.
*Applies for determining Highly Compensated Employees for the 2020 plan year.
Limits stated above are subject to the provisions of the plan. Refer to your plan document or contact your plan consultant (TPA) for more information.
The content of this document is for general information only and is believed to be accurate and reliable as of posting date but may be subject to change. Benefits Functional Fiduciaries does not provide investment, tax, plan design or legal advice. Please consult your own independent advisor as to any investment, tax, or legal statements made herein.
Benefits Functional Fiduciaries, 700 N. Central Ave., Suite 235, Glendale, CA 91203
