COLA Increases for Dollar Limitations on Benefits and Contributions

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. 


 

  2020 2019 2018

IRAs

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

Joint Return 104,000 103,000 101,000
Single or Head of Household 65,000 64,000 63,000

SEP

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 Plans

SIMPLE Maximum Contributions 13,500 13,000 12,500
Catch-up Contributions 3,000 3,000 3,000

401(k), 403(b), Profit-Sharing Plans, etc.

Annual Compensation 285,000 280,000 275,000
Elective Deferrals 19,500 19,000 18,500
Catch-up Contributions 6,500 6,000 6,000
Defined Contribution Limits 57,000 56,000 55,000
ESOP Limits

1,150,000

230,000

1,130,000

225,000

1,105,000

220,000

Other

HCE Threshold 130,000 125,000 120,000
Defined Benefit Limits 230,000 225,000 220,000
Key Employee 185,000 180,000 175,000
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