Benefit Insights: IRS Increases 401(k) Contribution Limit

The IRS announced its retirement plan benefits and 401(k) contribution limits for 2020.

A few key changes include:

• Limit on annual benefit for defined benefit plans: The limit on the annual benefit under a defined benefit plan increased from $225,000 to $230,000.
• Limit on annual addition for defined contribution plans: The limit for defined contribution plans increased from $56,000 to $57,000.
• Limit on exclusion for elective deferrals: The limit on elective salary deferrals into 401(k), 403(b), and 457 plans increased from $19,000 to $19,500.

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