Changes in 2020 Annual Retirement and Related Benefits

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The IRS recently announced the annual qualified retirement and related benefit limits for 2020.  The following is a Desk Reference Summary of the most common limits and how they compare with the limits for 2018 and 2019.

 

2018  

2019  

2020  

Dollar Limit for Defined Benefit Plans

$220,000

$225,000

$230,000

Dollar Limit for Defined Contribution Plans

55,000

56,000

57,000

401(k) and 403(b) Maximum Deferral

18,500

19,000

19,500

Catch-up Contribution for Participants Aged 50 or over (401(k) and 403(b))

6,000

6,000

6,500

Social Security Taxable Wage Base

128,400

132,900

137,700

Maximum Compensation Allowable for Benefit Purposes

275,000

280,000

285,000

Maximum Compensation to Determine Highly Compensated Status

120,000

125,000

130,000

SIMPLE Maximum Deferral

12,500

13,000

13,500

SIMPLE Catch-up Contribution for Participants Aged 50 or over

3,000

3,000

3,000

457 Maximum Deferral

18,500

19,000

19,500

HSA Contribution Limit – Self Only

3,450

3,500

3,550

HSA Contribution Limit – Family

6,900

7,000

7,100

HDHP Minimum Deductibles – Self Only

1,350

1,350

1,400

HDHP Minimum Deductibles – Family

2,700

2,700

2,800

HDHP Out-of-Pocket Maximum – Self Only

6,650

6,750

6,900

HDHP Out-of-Pocket Maximum – Family

13,300

13,500

13,800

This Tax, Estates & Employee Benefits Alert is intended to keep readers current on matters affecting employee benefits, and is not intended to be legal advice.  If you have any questions, please call Christine B. Bowers at 412.566.6181, William S. Carter at 412.566.6016, Kathryn A. English at 412.566.1226, Heather Stone Fletcher at 412.566.6112, Michael J. Herzog at 412.566.6130, Sandra R. Mihok at 412.566.1903, Paul M. Yenerall at 412.566.1944, or any other attorney with whom you have been working.

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