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.