2020 Guide to Employee Benefit Plan Contribution Limits

As a convenience to our small business clients, we’ve assembled the following index of contribution limits for a broad range of employee benefit plans. Plan sponsors and administrators should update payroll and plan administration systems to include 2020 cost-of-living adjustments, and incorporate the new limits in relevant employee and participant communications.

RETIREMENT PLAN LIMITS 2020 2019
401(k), 403(b) and 457(b) Plan Elective Deferrals $19,500 $19,000
Age 50 Catch-Up contribution (For Above Plans) $6,500 $6,000
SIMPLE Plan Elective Deferrals $13,500 $13,000
SIMPLE Plan Age 50 Catch-Up Contribution $3,000 $3,000
IRA Contribution Limit (Traditional and Roth) $6,000 $6,000
IRA Age 50 Catch-Up Contribution $1,000 $1,000
Defined Contribution Plan Limit $57,000 $56,000
Defined Benefit Plan Limit $230,000 $225,000
Annual Compensation Limit $285,000 $280,000
Highly Compensated Employee $130,000 $125,000
Key Employee $185,000 $180,000
FICA Taxable Wage Base $137,700 $132,900
 
FRINGE BENEFIT PLAN LIMITS 2020 2019
Flexible Spending Accounts (FSA) $2,750 $2,700
Dependent Care FSA $5,000 $5,000
Health Savings Account (HSA) Age 55 Catch-Up Contribution (Not Indexed) $1,000 $1,000
Self-Only Coverage:
HSA Contribution $3,550 $3,500
Minimum Deductible for High Deductible Health Plan (HDHP) $1,400 $1,350
Maximum Expense Limit for HDHP $6,900 $6,750
Family Coverage:
HSA Contribution $7,100 $7,000
Minimum Deductible for HDHP $2,800 $2,700
Maximum Expense Limit for HDHP $13,800 $13,500
 
QUALIFIED TRANSPORTATION LIMITS 2020 2019
Parking and Transit $270 $265
Bicycle $20 $20

Newsletter Signup
Get the latest accounting news and advice,
subscribe to The Weiss Advisor newsletter.
Sign-up Now
Contact Us
Get In Touch

Awards

Crain’s “Best Places to Work in Chicago” 2018, “Best Places to Work in Illinois” 2011-2019

Crains Best Places to Work in Chicago 2018 Best Places to Work in Illinois 2018

Memberships