It’s that time of year again.
The Internal Revenue Service has announced the 2020 retirement plan limits and the Social Security wage bases and rates.
BOTH CONTRIBUTION LIMITS ARE GOING UP! The new contribution limit is increasing to $19,500 from $19,000. The Catch-Up provision has also gone up to $6,500 from $6,000.
Other notable changes are:
- The Highly Compensated Employees’ Threshold increased to $130,000 from $125,000
- Annual Compensation limit from $280,000 to $285,000
The attached chart shows the maximum benefit and contribution limits for 2020. These new limits become effective January 1, 2020.
We recommend that you confirm with your payroll provider that all of their systems will be updated with these new limits. Specifically confirming that any calculations based on these updated limits will also be updated (such as your match). Feel free to reach out to the Marsh & McLennan Agency Retirement Services team with any questions you may have.
To view the full printable document attached.