Annual Plan Limits
Each year the U.S. government adjusts the limits for qualified plans and Social Security to reflect cost-of living adjustments and changes in the law. Many of these limits are based on the "plan year" as defined in the plan document. The elective deferral and catch-up limits are always based on the calendar year.
| Type | 2020 | 2019 | 2018 |
|---|---|---|---|
| Contribution and Benefit Limits | |||
| Elective Deferral Limit | $19,500 | $19,000 | $18,500 |
| Catch-Up Contributions | $6,500 | $6,000 | $6,000 |
| Annual Contribution Limit | $57,000 | $56,000 | $55,000 |
| Annual Contribution Limit including Catch-Up Contributions | $63,500 | $62,000 | $61,000 |
| Annual Benefit Limit | $230,000 | $225,000 | $220,000 |
| Compensation Limits | |||
| Maximum Plan Compensation | $285,000 | $280,000 | $275,000 |
| Income Subject to Social Security | $137,700 | $132,900 | $128,400 |
| Key EE Compensation Threshold | $185,000 | $180,000 | $175,000 |
| Highly Compensated EE Threshold | $130,000 | $125,000 | $120,000 |
| IRA Limits | |||
| SIMPLE Plan Elective Deferrals | $13,500 | $13,000 | $12,500 |
| SIMPLE Catch-Up Contributions | $3,000 | $3,000 | $3,000 |
| Individual Retirement Account (IRA) | $6,000 | $6,000 | $5,500 |
| IRA Catch-Up Contribution | $1,000 | $1,000 | $1,000 |