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IRS Announces New Retirement Plan Limits for 2020

Posted by Zinner & Co. Tax Team on Nov 7, 2019 9:53:24 AM
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The IRS has released the retirement contribution limits for the 2020 tax year. The new limits are adjusted based on increases in the cost of living.

 

  2020 2019
401(k), 403(b), 457(b) deferral limits $19,500 $19,000
401(k), 403(b) catch-up deferral limits for 50 and older $6,500

$6,000

Annual limitation on compensation $285,000

$280,000

Defined benefit limitation $230,000 $225,000
Highly compensated employee compensation threshold $130,000

$125,000

Key employee compensation (officer) threshold $185,000 $180,000
SIMPLE Deduction $13,500

$13,000

SIMPLE catch-up contribution $3,000 $3,000
IRA contribution limit  $6,000 $6,000
IRA catch-up contribution limit $1000 $1000
Social Security Taxable Income Limit $137,700 $132,900

 

If you have questions about the new contribution limits, or would like to understand how this may impact your retirement and tax strategies, contact us

Topics: Taxes - Individual, Retirement Planning & IRAs, IRS

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