Summary

Qualified Retirement Plan Limits
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The IRS annually adjusts qualified retirement plan limits for increases in the cost of living.
The following table lists the 2020 and 2019 limits
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Internal Revenue Code Limits

2020 2019
401(k) plan – elective deferrals $19,500 $19,000
403(b) plan – elective deferrals $19,500 $19,000
Governmental 457(b) plan – elective deferrals $19,500 $19,000
Catch-up contribution limit – 401(k), 403(b) and governmental 457(b) plans $6,500 $6,000
SIMPLE plan – elective deferrals $13,500 $13,000
SIMPLE plan – catch-up contributions $3,000 $3,000
Defined benefit plans – maximum annual annuity $230,000 $225,000
Defined contribution plans – maximum annual addition $57,000 $56,000
Maximum annual compensation – defined benefit plans, defined contribution plans and SEPs $285,000 $280,000
Annual compensation – definition of “highly compensated employee” $130,000 $125,000
Annual compensation  – “officer” or “key employee” definition $185,000 $180,000
Simplified Employee Pension (SEP) – minimum compensation $600 $600
Tax credit ESOP
5-year limit $1,150,000 $1,130,000
1-year extension $230,000 $225,000