Merit Benefits Group, LLC A third party retirement plan administration service provider
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Annual Plan Limits

Each year the U.S. government adjusts the limits for qualified plans and Social Security to reflect cost-of-living adjustments and changes in the law. Many of these limits are based on the "plan year" as defined in the plan document. The elective deferral and catch-up limits are always based on the calendar year.

Type 2020 2019 2018
Contribution and Benefit Limits
Elective Deferral Limit $19,500 $19,000 $18,500
Catch-Up Contributions $6,500 $6,000 $6,000
Annual Contribution Limit $57,000 $56,000 $55,000
Annual Contribution Limit including Catch-Up Contributions $63,500 $62,000 $61,000
Annual Benefit Limit $230,000 $225,000 $220,000
Compensation Limits
Maximum Plan Compensation $285,000 $280,000 $275,000
Income Subject to Social Security $137,700 $132,900 $128,400
Key EE Compensation Threshold $185,000 $180,000 $175,000
Highly Compensated EE Threshold $130,000 $125,000 $120,000
IRA Limits
SIMPLE Plan Elective Deferrals $13,500 $13,000 $12,500
SIMPLE Catch-Up Contributions $3,000 $3,000 $3,000
Individual Retirement Account (IRA) $6,000 $6,000 $5,500
IRA Catch-Up Contribution $1,000 $1,000 $1,000

 

     


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