1 Must aggregate employee contributions to all 401(k), 403(b), SAR-SEP, and SIMPLE plans of all employers. 457(b) plan contributions are not aggregated. For SAR-SEPs, the percentage limit is 25% of compensation reduced by elective deferrals (effectively, a 20% maximum contribution).
| IRA contribution limits |
2019 |
2020 |
| Traditional IRAs |
Lesser of $6,000 or 100% of earned income |
Lesser of $6,000 or 100% of earned income |
| Roth IRAs |
Lesser of $6,000 or 100% of earned income |
Lesser of $6,000 or 100% of earned income |
| Additional "catch-up" limits (individuals age 50 or older) |
2019 |
2020 |
| 401(k) plans, 403(b) plans, 457(b) plans, and SAR-SEPs2 |
$6,000 |
$6,500 |
| SIMPLE 401(k) plans and SIMPLE IRA plans |
$3,000 |
$3,000 |
| IRAs (traditional and Roth) |
$1,000 |
$1,000 |
2 Special catch-up limits may also apply to 403(b) and 457(b) plan participants.
Employer contribution/benefit 3 limits
| Defined benefit plan limits |
2019 |
2020 |
| Annual contribution limit per participant |
No predetermined limit. Contributions based on amount needed to fund promised benefits |
No predetermined limit. Contributions based on amount needed to fund promised benefits |
| Annual benefit limit per participant |
Lesser of $225,000 or 100% of average compensation for highest three consecutive years |
Lesser of $230,000 or 100% of average compensation for highest three consecutive years |
| Defined contribution plan limits [qualified plans, 403(b) plans, SEP, and SIMPLE plans] |
2019 |
2020 |
| Annual addition limit per participant (employer contributions; employee pre-tax, after-tax, and Roth contributions; and forfeitures) (does not apply to SIMPLE IRA plans) |
Lesser of $56,000 or 100% (25% for SEP) of participant's compensation |
Lesser of $57,000 or 100% (25% for SEP) of participant's compensation |
| Maximum tax-deductible employer contribution [not applicable to 403(b) plans] |
25% of total compensation of employees covered under the plan (20% if self employed) plus any employee pre-tax and Roth contributions; 100% for SIMPLE plans |
25% of total compensation of employees covered under the plan (20% if self employed) plus any employee pre-tax and Roth contributions; 100% for SIMPLE plans |
3 For self-employed individuals, compensation generally means earned income. This means that, for qualified plans, deductible contributions for a self-employed individual are limited to 20% of net earnings from self-employment (net profits minus self-employment tax deduction), and special rules apply in calculating the annual additions limit.
Compensation limits/thresholds
| Retirement plan compensation limits |
2019 |
2020 |
| Maximum compensation per participant that can be used to calculate tax-deductible employer contribution (qualified plans and SEPs) |
$280,000 |
$285,000 |
| Compensation threshold used to determine a highly compensated employee |
$125,000 (when 2019 is the look-back year) |
$130,000 (when 2020 is the look-back year) |
| Compensation threshold used to determine a key employee in a top-heavy plan |
$1 for more-than-5% owners, $180,000 for officers, $150,000 for more-than-1% owners |
$1 for more-than-5% owners, $185,000 for officers, $150,000 for more-than-1% owners |
| Compensation threshold used to determine a qualifying employee under a SIMPLE plan |
$5,000 |
$5,000 |
| Compensation threshold used to determine a qualifying employee under a SEP plan |
$600 |
$600 |
| Traditional deductible IRA income limits — Income phase-out range for determining deductibility of traditional IRA contributions for taxpayers covered by an employer-sponsored plan and filing as: |
2019 |
2020 |
| Single |
$64,000 - $74,000 |
$65,000 - $75,000 |
| Married filing jointly |
$103,000 - $123,000 |
$104,000 - $124,000 |
| Married filing separately |
$0 - $10,000 |
$0 - $10,000 |
| Traditional deductible IRA income limits — Income phase-out range for determining deductibility of traditional IRA contributions for taxpayers not covered by an employer-sponsored retirement plan but filing a: |
2019 |
2020 |
| Joint return with a spouse who is covered by an employer-sponsored retirement plan |
$193,000 - $203,000 |
$196,000 - $206,000 |
| Roth IRA compensation limits — Income phase-out range for determining ability to fund Roth IRA for taxpayers filing as: |
2019 |
2020 |
| Single |
$122,000 - $137,000 |
$124,000 - $139,000 |
| Married filing jointly |
$193,000 - $203,000 |
$196,000 - $206,000 |
| Married filing separately |
$0 - $10,000 |
$0 - $10,000 |
|
