Client Alerts Employee Benefits & Executive Compensation
The IRS annually adjusts the dollar limits for contributions and benefits in retirement and certain deferred compensation plans and for health and welfare plans. The IRS recently announced the new dollar limits for 2020.
2019 Limit | 2020 Limit | |
Maximum 401(k), 403(b) and 457(b) Elective Deferral | $19,000 | $19,500 |
Maximum Catch-Up Contribution Age 50 and Older | $6,000 | $6,500 |
Highly Compensated Employee Threshold | $125,000 | $130,000 |
Maximum Compensation Used to Determine Contributions and Benefits | $280,000 | $285,000 |
Defined Contribution Plan Annual Contribution Limit | $56,000 | $57,000 |
Defined Benefit Plan Annual Benefit Limit | $225,000 | $230,000 |
Top Heavy Key Employee Threshold | $180,000 | $185,000 |
Health FSA | $2,700 | $2,750 |
Dependent Care FSA (unchanged) | $5,000 | $5,000 |
Health Savings Accounts | Single/Family | Single/Family |
Maximum Contributions | $3,500/$7,000 | $3,550/$7,100 |
Maximum Catch-Up Contribution Age 55 and Older (unchanged) | $1,000/$1,000 | $1,000/$1,000 |
High Deductible Health Plan (HDHP) | ||
Minimum Deductibles | $1,350/$2,700 | $1,400/$2,800 |
Maximum Out-of-Pocket Amounts | $6,750/$13,500 | $6,900/$13,800 |
If you have any questions about this Alert, please feel free to call (919.781.4000) or e-mail your Wyrick Robbins contact or one of the following members of our Employee Benefits and Executive Compensation group: Gray Hutchison (ghutchison@wyrick.com) or San Parikh (sparikh@wyrick.com).