2020: Retirement Savings Plan Contribution Limits
The information below summarizes the retirement plan contribution limits for 2020.
|Plan||Normal LImit||"Age 50" Catch-up Limit||"Pre-Retirement" Catch-up Limit *|
|401(a)||$57,000 (415 Limit)||N/A||N/A|
|457(b)||$19,500 (402(g) Limit)||$6,500||$19,500 (for a total of $39,000)|
N/A = Not applicable
More details on the retirement plan limits are available from the IRS . The annual compensation limit for Employees in 2020 is $285,000 for all Plans. Therefore, a specified Plan contribution rate cannot be applied to compensation over that limit.
The total contribution limit for 401(a) defined contribution plans under section 415(c)(1)(A) increases to $57,000 in 2020. This includes both employer and employee contributions. All contributions for all defined contribution plans (except Section 457(b) Plans) must be combined for the 415 limit.
The normal contribution limit for elective deferrals to a 457 deferred compensation plan increases to $19,500 in 2020. Employees age 50 or older may contribute up to an additional $6,500, for a total of $26,000. Employees taking advantage of the special pre-retirement catch-up may be eligible to contribute up to double the normal limit, for a total of $39,000. Section 457(b) Plan limits stand alone.
The contribution limit for Traditional and Roth IRAs increases to $6,000 in 2020. Employees age 50 or older are eligible to contribute an additional $1,000, for a total of $7,000.