The tax law places limits on the dollar amount of contributions to retirement plans and IRAs and the amount of benefits under a pension plan. IRC Section 415 requires the limits to be adjusted annually for cost-of-living increases.
- Limits by plan type (IRA, 401(k), SEP, SIMPLE IRA, 403(b), 457(b), defined benefit)
- 2020 cost-of-living adjustments for pension plans and retirement-related items (IR-2019-179)
- COLA Table for prior years' dollar limitations and Internal Revenue Code references.
|IRA Contribution Limit||$6,000||$6,000||$5,500|
|IRA Catch-Up Contributions||1,000||1,000||1,000|
IRA AGI Deduction Phase-out Starting at
|Single or Head of Household||65,000||64,000||63,000|
|SEP Minimum Compensation||600||600||600|
|SEP Maximum Contribution||57,000||56,000||55,000|
|SEP Maximum Compensation||285,000||280,000||275,000|
|SIMPLE Maximum Contributions||13,500||13,000||12,500|
401(k), 403(b), Profit-Sharing Plans, etc.
|Defined Contribution Limits||57,000||56,000||55,000|
|Defined Benefit Limits||230,000||225,000||220,000|
|457 Elective Deferrals||19,500||19,000||18,500|
|Control Employee (board member or officer)||115,000||110,000||110,000|
|Control Employee (compensation-based)||230,000||225,000||220,000|
|Taxable Wage Base||137,700||132,900||128,400|