Tuesday, February 18, 2020

COST-OF-LIVING ADJUSTMENTS 2020


COST-OF-LIVING ADJUSTMENTS
2020

Pension Plan and Related Limits
2019
2020
Pre-tax elective deferral maximum under IRC § 401(k), 403(b), and 457(b) plans (IRC §§ 402(g)(3) & 457 (e)(15))
$19,000
$19,500
Age 50 and older “catch-up” adjustment for 401(k), 403(b), and governmental 457(b) plans and SEPs (IRC § 414(v)(2)(B)(i))
$6,000
$6,500
Annual compensation limit under IRC §§ 401(a)(17), 404(l) and 408(k)
$280,000
$285,000
Annual benefit limit for defined benefit plans under IRC § 415(b)
$225,000
$230,000
Annual contribution limit for defined contribution plans under IRC § 415(c)
$56,000
$57,000
Highly compensated employee threshold for purposes of nondiscrimination testing in the following year under IRC § 414(q)(1)(B)
$125,000
$130,000
Key employee threshold for officers for top heavy plan under IRC § 416(i)(1)(A)(i)
$180,000
$185,000
ESOP account balance for 5 and 1 year distributions under IRC § 409(o)(1)(C)(ii)
 $1,130,000 and $225,000
$1,150,000 and $230,000
Limit on premiums paid for qualified longevity annuity contracts (QLACs) under Treas. Reg. § 1.401(a)(9)-6 (adopted 2014)
$130,000
$135,000
Minimum earnings level to qualify for SEP under IRC § 408(k)
$600
$600
SIMPLE plan elective deferral limit under IRC § 408(p)(2)(E)
$13,000
$13,500
SIMPLE 401(k) or IRA age 50 catch-up (IRC § 414(v)(2)(B)(ii))
$3,000
$3,000
Basic/Roth IRA contribution limit under IRC §§ 219(b)(5)(A) & 408A. (Age 50 $1,000 IRA catchups do not have cost-of-living adjustments)
$6,000
$6,000
Adjusted gross income (AGI) phase-out of deduction for IRA where the participant or spouse contributing to the IRA also participates in an employer-sponsored retirement plan (IRC § 219(g)(1) & (3))  For married joint filers –
For single filers –
$103,000 to $123,000
  
$64,000 to
$74,000
$104,000 to $124,000

$65,000 to
$75,000
AGI phase-out of deduction for IRA for married persons filing jointly where the spouse who is contributing to the IRA also participates in the employer-sponsored retirement plan (IRC § 219(g)(7))
$193,000 to $203,000

$196,000 to $206,000
Health Savings Account contribution limits (single and family)
$3,500 and $7,000
$3,550 and $7,100
PBGC guaranteed benefit (annual single life annuity)
$67,295
$69,750
PBGC flat-rate premiums per participant for a single-employer plans
$80
$83
PBGC variable-rate premium for single-employer plans per $1,000 of Unfunded Vested Benefits
$43
$45
PBGC premiums for multiemployer plans per participant
$29
$30
Taxable wage base subject to FICA tax
$132,900
$137,700






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