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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BenefitsLink Retirement Plans Newsletter, ISSN no. 1536-9587. Copyright 2019 BenefitsLink.com, Inc. All materials contained in this newsletter are protected by United States copyright law and may not be reproduced, distributed, transmitted, displayed, published or broadcast without the prior written permission of BenefitsLink.com, Inc., or in the case of third party materials, the owner of those materials. You may not alter or remove any trademark, copyright or other notices from copies of the content.

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