This blog post is not intended to be exhaustive nor should any discussions or opinions be construed as legal advice - it is intended for educational and/or informational purposes only.
On November 6, 2019 the IRS released the annual inflation adjustments for more than 60 tax provisions. Here is a summary of the important 2020 limits:
2020 Limits
Type of Limit | Limit Amount |
401(k), 403(b) & 457(b) deferrals | $19,500 |
Catch-up 401(k), 403(b) & 457(b) | $6,500 |
415(c) Limit | $57,000 |
Annual Compensation Limit | $285,000 |
HCE Compensation Limit | $130,000 |
Maximum Pension at age 62 | $230,000 |
SIMPLE Deferrals | $13,500 |
SIMPLE Catch-up | $3,000 |
SEP Minimum Compensation | $600 |
Key Employee Limit, Officer Test | $185,000 |
IRAs for individuals age 49 & below | $6,000 |
IRAs for individuals age 50 & above | $7,000 |
Social Security Taxable Wage Base | $137,700 |
HSA Limits for 2020
Type of Limit | 2019 | 2020 | Change | |
HSA Contribution Limit | Self-only | $3,500 | $3,550 | Up $50 |
Family | $7,000 | $7,100 | Up $100 | |
HSA Catch-up Contributions | Age 55 or older | $1,000 | $1,000 | No change |
HDHP Minimum Deductible | Self-only | $1,350 | $1,400 | Up $50 |
Family | $2,700 | $2,800 | Up $100 | |
HDHP Max Out-of-Pocket | Self-only | $6,750 | $6,900 | Up $150 |
Family | $13,500 | $13,800 | Up $300 |
FSA Limits for 2020
2019 | 2020 | Change |
$2,700 | $2,750 | Up $50 |
Other Important Limits
Visit the IRS notices for the full listing of 2020 limits and changes:
This blog post is not intended to be exhaustive nor should any discussions or opinions be construed as legal advice - it is intended for educational and/or informational purposes only.