
Sep 15, 2020
Form 5500 Filing Deadline FAQs
These cost-of-living adjustments will take effect on January 1, 2020. Highlights of the adjustments include an increase in the contribution limit for employees who participate in 401(k), 403(b), most 457 plans, and the Federal government’s Thrift Savings Plan.
The chart below outlines all limitation adjustments for 2020:
2020 | 2019 | |
401(k), 403(b), Profit-Sharing Plans, etc. | ||
Annual Compensation | $285,000 | $280,000 |
Elective Deferrals | 19,500 | 19,000 |
Defined Contribution Limits | 57,000 | 56,000 |
Catch-up Contributions | 6,500 | 6,000 |
IRAs | ||
IRA Contribution Limit | $6,000 | $6,000 |
IRA Catch-Up Contributions | 1,000 | 1,000 |
SIMPLE Plans | ||
SIMPLE Maximum Contributions | $13,500 | $13,000 |
Catch-up Contributions | 3,000 | 3,000 |
SEP | ||
SEP Maximum Compensation | $285,000 | $280,000 |
SEP Maximum Contribution | 57,000 | 56,000 |
SEP Minimum Compensation | 600 | 600 |
ESOP | ||
Account Balance | $1,150,000 | $1,130,000 |
5-year Distribution Factor | 230,000 | 225,000 |
Other Limits | ||
HCE Threshold | $130,000 | $125,000 |
Defined Benefit Limits | 230,000 | 225,000 |
Key Employee | 185,000 | 180,000 |
457 Elective Deferrals | 19,500 | 19,000 |
The annual contribution limit to an IRA remains at $6,000 and the associated catch-up contribution limit for individuals aged 50 and over, remains at $1,000.
Author: Dominique Walsh, CPA, Employee Benefit Plan Services Group | dwalsh@withum.com
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