The IRS recently announced the annual changes to several dollar limitations that are adjusted annually. Here are some of the key figures that changed, showing the new amounts for 2020 and amounts for this year and last year:
| 2020 | 2019 | 2018 | |||
|---|---|---|---|---|---|
IRAs |
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| 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 |
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| Joint Return | 104,000 | 103,000 | 101,000 | ||
| Single or Head of Household | 65,000 | 64,000 | 63,000 | ||
SEP |
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| 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 |
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| 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. |
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| 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 |
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Other |
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| 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 | ||