For Individuals,For Plan Sponsors,Retirement Savings Plans,Custom

IRS Announces 2020 Retirement Plan Contribution Limits

November 7, 2019

On November 6, 2019, the IRS announced the various adjustments applicable to retirement plan contribution limits for 2020. 

  • 402(g) Annual elective deferral limits for 457, 403(b), and 401(k) plans will increase from $19,000 to $19,500
  • Age 50 Catch Up limits for 457, 403(b) and 401(k) plans will increase from $6,000 to $6,500
  • 415(c) Annual Additions limits for 401(a) plans will increase from $56,000 to $57,000 
  • For 2020, Traditional and Roth IRA contribution limits remain unchanged from 2019 at $6,000

More details on the retirement plan limits are available from the IRS

The tables below provide the 2019 and 2020 contribution limitations for 457, 401, 403(b) and IRA plans. ICMA-RC will provide additional information for plan sponsors and participants at www.icmarc.org and through Employer Bulletins in the near future.

457 Plan Limits

Limitation20202019
Annual Deferral Limit for 457 Plans $19,500 $19,000
"Pre-Retirement" Catch-Up Limit $19,500
($39,000 total)
$19,000
($38,000 total)
"Age 50" Catch-Up Limit $6,500
($26,000 total)
$6,000
($25,000 total)

 

401 Plan Limits

Limitation

2020

2019

401 Defined Contribution Plans - Annual Additions (§415(c)(1)(A)) $57,000 $56,000
401 Defined Benefit Plans - Maximum Annual Benefit* (§415(b)(1)(A)) $230,000 $225,000
401 Annual Compensation Limit** (non-grandfather/grandfather) (§401(a)(17))) $285,000/$425,000 $280,000/$415,000

Annual Deferral Limit for (§401(k) Plans (§402(g))

$19,500 $19,000
401(k) "Age 50" Catch-Up (§414(v)) $6,500
($26,000 total)
$6,000
($25,000 total)

 

403(b) Plan Limits

Limitation20202019
Annual Deferral Limit for 403(b) Plans $19,500 $19,000
"Age 50" Catch-Up Limit $6,500
($26,000 total)
$6,000
($25,000 total)

 

Traditional IRA & Roth IRA Contribution Limits

Limitation20202019
Annual Contribution Limit $6,000 $6,000
"Age 50" Catch-Up Limit $1,000 $1,000

 

*Special limitations apply to defined benefit plans. Please contact your defined benefit plan administrator for additional information.

**OBRA 1993 provided a governmental exception for the maximum compensation limit that grandfathers certain employees under the 1993 compensation limit of $235,840. Employees eligible to participate in a governmental plan, utilizing the ICMA-RC plan document, prior to January 1, 1994, are subject to the maximum compensation limit of $235,840 as indexed and shown above as the "grandfather" limit. Employees eligible to participate in a governmental plan, utilizing the ICMA-RC plan document, after January 1, 1994, are subject to the maximum compensation limit of $150,000 as indexed and shown above as the "non-grandfather" limit.

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