The IRS has released additional cost of living adjustments which affect the dollar limits for both retirement and health & welfare plans. Many of the limits have increased from 2019 to 2020 due to an increase in the Consumer Price Index on which these limits are based. Please refer to the table below.
| Retirement Limitations
|
2019
|
2020
|
| 401(k) / 403(b) / 457 Plan Maximum Elective Deferral |
$19,000 | $19,500 |
| Qualified Plan Compensation Limit | $280,000 | $285,000 |
| Catch-Up Contribution Limit for all plans other than 401(k) (11) and 408(p) plans |
$6,000 | $6,500 |
| Catch-up Contribution Limit for 401(k)(11) and 408(p) |
$3,000 | No change |
| Highly Compensated Employee Definition | $125,000 | $130,000 |
| Top Heavy Key Employee Definition | $180,000 | $185,000 |
| Defined Contribution Annual Additions Limit | $56,000 | $57,000 |
| Defined Benefit Annual Benefit Limit | $225,000 | $230,000 |
| Social Security Taxable Wage Base | $132,900 | $137,700 |
| Flexible Spending Accounts (FSAs)
|
2019
|
2020
|
| Health FSA Limit | $2,700 | $2,750 |
| Dependent Care Account
|
2019
|
2020
|
| Married individuals, filing separately | $2,500 | TBD* |
| Households | $5,000 | TBD* |
| Health Savings Account Limitations (HSAs)
|
2019
|
2020
|
| HSA Contribution Limits | $3,500 | $3,550 |
| Individuals | $7,000 | $7,100 |
| Family | $7,000 | $7,100 |
| Catch-up | $1,000 | No change |
| HDHP Out of Pocket Maximum | ||
| Individual | $6,750 | $6,900 |
| Family | $13,500 | $13,800 |
| HDHP Minimum Annual Deductible | ||
| Individual | $1,350 | $1,400 |
| Family | $2,700 | $2,800 |
| Employer Provided Adoption Assistance Programs | $14,080 | $14,300 |
| Transportation Fringe Programs
|
2019
|
2020
|
| Mass Transit Expenses | $265/month | $270/month |
| Parking Expenses | $265/month | $270/month |
