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New Retirement Plan Contribution Limits for 2020

November 08, 2019

401k contribution limits have changed for the New Year. Take a look at some adjustments to phase-out ranges and contribution limits for 2020.

The Internal Revenue Service has issued the annual cost of living adjustments for 401(k) and IRA contributions, pension plans, and other retirement related matters.


The limits

Individual Retirement Account Limits 2020 (Roth and traditional)

CONTRIBUTION LIMITS

2019

2018

2017

IRA Contribution Limit

$6,000

$6,000

$5,500

IRA Catch-Up Contributions

$1,000

$1,000

$1,000

401(k), 457 and 403(b)

CONTRIBUTION LIMITS

2020

2019

2018

401(k), 457 and 403(b) maximum annual elective deferral limit

$19,500

$19,000

$18,500

401(k), 457 and 403(b) catch up contribution limit for those 50 and over

$6,500

$6,000

$6,000

You can make contributions up to the IRS contribution limits noted above or up to $285,000 in 2020—here’s how that number has changed through the years.

2020

2019

2018

Annual Compensation Limit

$285,000

$280,000

$275,000

SIMPLE- Savings Incentive Match Plan for Employees

CONTRIBUTION LIMITS

2020

2019

2018

SIMPLE employee deferrals

$13,500

$13,000

$12,500

SIMPLE catch up deferrals

$3,000

$3,000

$3,000

Simplified Employee Pension (SEP)

CONTRIBUTION LIMITS

2020

2019

2018

SEP annual compensation limit

$285,000

$280,000

$275,000

SEP minimum compensation

$600

$600

$600

SEP maximum contribution$57,000$56,000$55,000

Phase-out ranges for 2020:

Traditional IRA MAGI Limits

2020

2019

2018

Married filing jointly; a spouse who participates in an employer-sponsored plan

$104,000- $124,000

$103,000- $123,000

$101,000- $121,000

Married filing jointly; a spouse who does not participate in an employer sponsored plan

$196,000- $206,000

$193,000- $203,000

$189,000- $199,000

Single or Head of Household$65,000- $75,000$64,000- $74,000$63,000- $73,000

For Roth IRAs, if your MAGI falls within the applicable range, you can make a partial contribution, but if it exceeds the top of the range, you are not allowed to make a contribution.

Roth IRA MAGI Limits

2020

2019

2018

Married filing jointly

$196,000- $206,000

$193,000- $203,000

$189,000- $199,000

Single or Head of Household

$124,000- $139,000

$122,000- $137,000

$120,000- $135,000

What is the social security wage base for 2020?

2020

2019

2018

Social Security Wage Base

$137,700

$132,900

$128,700


Interested in learning more about tax-advantaged retirement saving strategies?

Contact our Tax Team for more information.

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