Retirement Plans Newsletter

BULLETIN
November 6, 2019

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[Official Guidance]

Text of IRS Notice 2019-59: 2020 Adjusted Limitations (PDF)

"Effective January 1, 2020, the limitation on the annual benefit under a defined benefit plan under Section 415(b)(1)(A) is increased from $225,000 to $230,000.... The limitation for defined contribution plans under Section 415(c)(1)(A) is increased in 2020 from $56,000 to $57,000.... The limitation under Section 402(g)(1) on the exclusion for elective deferrals described in Section 402(g)(3) is increased from $19,000 to $19,500. The annual compensation limit under Sections 401(a)(17), 404(l), 408(k)(3)(C), and 408(k)(6)(D)(ii) is increased from $280,000 to $285,000. The dollar limitation under Section 416(i)(1)(A)(i) concerning the definition of 'key employee' in a top-heavy plan is increased from $180,000 to $185,000.... The dollar limitation under Section 414(v)(2)(B)(i) for catch-up contributions to an applicable employer plan other than a plan described in Section 401(k)(11) or Section 408(p) for individuals aged 50 or over is increased from $6,000 to $6,500. "
Internal Revenue Service [IRS]

[Guidance Overview]

401(k) Contribution Limit Increases to $19,500 for 2020; Catch-Up Limit Rises to $6,500 (PDF)

"The [IRS] today announced that employees in 401(k) plans will be able to contribute up to $19,500 next year.... The contribution limit for employees who participate in 401(k), 403(b), most 457 plans, and the federal government's Thrift Savings Plan is increased from $19,000 to $19,500. The catch-up contribution limit for employees aged 50 and over who participate in these plans is increased from $6,000 to $6,500. The limitation regarding SIMPLE retirement accounts for 2020 is increased to $13,500, up from $13,000 for 2019."
Internal Revenue Service [IRS]

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