Announcing 2020 Retirement Plan Contribution Limits

Every year, the Internal Revenue Service reviews the dollar limitations for retirement plans and other similar items and announces cost of living adjustments.

For calendar year 2020, many limitations are changing. The table below provides key limits for 2020 and 2019:

Item

2020

2019

401(k)/403(b) Elective Deferrals

$19,500

$19,000

Annual Compensation Limit

$285,000

$280,000

Annual Contribution Limit

$57,000

$56,000

Annual Benefit Limit

$230,000

$225,000

Highly Compensated Employee 

$130,000

$125,000

Social Security Wage Base

$137,700

$132,900

Catch-Up Contributions

$6,500

$6,000

 

For more information as well as the complete IRS announcement:

2019-179 issued November 6, 2019 and 2020 Social Security Cola

If you have questions, please contact your PNC representative.

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The material presented herein is of a general nature and does not constitute the provision by PNC of investment, legal, tax, or accounting advice to any person, or a recommendation to buy or sell any security or adopt any investment strategy. Opinions expressed herein are subject to change without notice. The information was obtained from sources deemed reliable. Such information is not guaranteed as to its accuracy.

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