The IRS has announced the updated retirement plan limits for 2020. Here are the notable limits for defined contribution (DC) plans:
- The annual contribution limit will increase from $19,000 to $19,500.
- The age 50 annual catch-up contribution limit will increase from $6,000 to $6,500, the first increase since 2015.
- The annual compensation limit will increase from $280,000 to $285,000.
- The Section 415(c) limit will increase from $56,000 to $57,000.
- The highly compensated employee threshold will increase from $125,000 to $130,000.
For more information, visit the IRS website.
