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Client Alert: 2020 Dollar Limitations for Employee Benefit Plans

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).