Retirement Plan Limits
The 2020 annual retirement plan limitations as compared to 2019 are as follows:
| 2020 | 2019 | |
|---|---|---|
| 401(k), 403(b) and 457(b) Plan Elective Deferrals | $19,500 | $19,000 |
| Age 50 Catch-Up contribution (For Above Plans) | $6,500 | $6,000 |
| SIMPLE Plan Elective Deferrals | $13,500 | $13,000 |
| SIMPLE Plan Age 50 Catch-Up Contribution | $3,000 | $3,000 |
| IRA Contribution Limit (Traditional and Roth) | $6,000 | $6,000 |
| IRA Age 50 Catch-Up Contribution (Not Indexed) | $1,000 | $1,000 |
| Defined Contribution Plan Limit | $57,000 | $56,000 |
| Defined Benefit Plan Limit | $230,000 | $225,000 |
| Annual Compensation Limit | $285,000 | $280,000 |
| Highly Compensated Employee | $130,000 | $125,000 |
| Key Employee | $185,000 | $180,000 |
| FICA Taxable Wage Base | $137,700 | $132,900 |
Health and Welfare Plan Limits
The 2020 annual limitations as compared to 2019 are as follows:
| 2020 | 2019 | |
|---|---|---|
| Flexible Spending Accounts (FSA) | $2,750 | $2,700 |
| Dependent Care FSA (Not Indexed) | $5,000 | $5,000 |
| Health Savings Account (HSA) Age 55 Catch-Up Contribution (Not Indexed) | $1,000 | $1,000 |
| Self-Only Coverage: | ||
| HSA Contribution | $3,550 | $3,500 |
| Minimum Deductible for High Deductible Health Plan (HDHP) | $1,400 | $1,350 |
| Maximum OOP Expense Limit for HDHP | $6,900 | $6,750 |
| Family Coverage: | ||
| HSA Contribution | $7,100 | $7,000 |
| Minimum Deductible for HDHP | $2,800 | $2,700 |
| Maximum OOP Expense Limit for HDHP | $13,800 | $13,500 |
Qualified Transportation Fringe Benefit Limits
The 2020 monthly qualified transportation fringe benefit limitations as compared to 2019 are as follows:
| 2020 | 2019 | |
|---|---|---|
| Parking and Transit | $270 | $265 |
| Bicycle | $20 | $20 |
Plan sponsors should update payroll and plan administration systems for the 2020 cost-of-living adjustments and incorporate the new limits in relevant employee and participant communications.
For further information about the new IRS employee plan limits, contact Larry Ruff at [email protected] or 312.670.7444. Visit orba.com to learn more.
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