IRS Limits for Qualified Retirement Plans

IRS updated cost-of-living adjustments (COLAs) applicable to contribution limitations for qualified retirement plans.

For Plan Years Beginning In 2020 2019 2018 2017 2016
Taxable Wage Base $137,700 $132,900 $128,400 $127,200 $118,500
Medicare Taxable Wage Base No Limit No Limit No Limit No Limit No Limit
Defined Benefit Limit $230,000 $225,000 $220,000 $215,000 $210,000
Compensation Limit $285,000 $280,000 $275,000 $270,000 $265,000
SEP Coverage $600 $600 $600 $600 $600
Key Employee 2020 2019 2018 2017 2016
Officer Compensation Exceeding $185,000 $180,000 $175,000 $175,000 $170,000
A more than 1% Owner Compensation Exceeding $150,000 $150,000 $150,000 $150,000 $150,000
A more than 5% Owner
Highly Compensated Employees 2020 2019 2018 2017 2016
Compensation Exceeding $130,000 $125,000 $120,000 $120,000 $120,000
Top Paid Group and Compensation Exceeding $130,000 $125,000 $120,000 $120,000 $120,000
A more than 5% Owner
For Plan Years Ending In 2020 2019 2018 2017 2016
Defined Contribution Limit $57,000 $56,000 $55,000 $54,000 $53,000
For Calendar Year 2020 2019 2018 2017 2016
401(k) Deferral Limit $19,500 $19,000 $18,500 $18,000 $18,000
401(k) “Catch-Up” Contribution * $6,500 $6,000 $6,000 $6,000 $6,000
Simple Deferral Limit $13,500 $13,000 $12,500 $12,500 $12,500
Simple “Catch-Up” Contribution $3,000 $3,000 $3,000 $3,000 $3,000

* Applies to Participants who have their 50th birthday (or older) during the calendar year.