The IRS recently released the 2020 cost-of-living adjustments (COLAs) for pension and 401(k) limitations.
Here are the highlights:
- The IRC Section 415(c) contribution limit applicable to defined contribution retirement plans increased from $56,000 to $57,000 for 2020.
- The IRC Section 401(a)(17) annual compensation limit applicable to retirement plans increased from $280,000 to $285,000 for 2020.
- The elective deferral limit under IRC Section 402(g) increased to $19,500 for 2020.
- The catch-up contribution limit under IRC Section 414(v) for individuals aged 50 or over increased to $6,500 for 2020.
View our handy summary of the indexed amounts and other commonly used limits for 2017 to 2020.