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 (PDF) for prior years’ dollar limitations and Internal Revenue Code references.
| 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 | 1,150,000230,000 | 1,130,000225,000 | 1,105,000220,000 |
| 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 |
