By: Randall Cook,  Employee Benefits & Executive Compensation Attorney

On November 6, 2019, the IRS announced the annual cost-of-living dollar adjustments applicable to retirement plans beginning January 1, 2020. The full list of adjustments is contained in IRS Notice 2019-59. Here are some highlights:

  2020 2019
401(k)/403(b) Elective
Deferral Limit
$19,500 $19,000
Defined Contribution
Plan Annual Limit
$57,000 $56,000
Defined Benefit Plan
Annual Limit
$230,000 $225,000
Annual Compensation Limit $285,000 $280,000
401(k)/403(b) Catch-Up
Contribution Limit
$6,500 $6,000
Highly Compensated Employee
Compensation Threshold
$130,000 $125,000
SIMPLE IRA Elective Deferral Limit $13,500 $13,000
SIMPLE IRA Catch-Up Contribution Limit (Unchanged) $3,000 $3,000

Social Security Wage Base
(For Integrated Plans)

$137,700

$132,900

For more information on retirement plan issues, please contact a member of our Employee Benefits & Executive Compensation team.

Randy Cook is a partner in the Employee Benefits & Executive Compensation practice group. The information in this article is not intended to provide legal advice. For professional consultation, please contact Randy Cook at Saalfeld Griggs PC.  503.399.1070.  rcook@sglaw.com  © 2019 Saalfeld Griggs PC

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