The IRS has announced the 2020 annual dollar limitations for retirement plans based on the applicable cost-of-living adjustment guidelines. The annual limit for elective deferrals to 401(k) and 403(b) plans will increase from $19,000 to $19,500 and the annual limit for catch-up contributions for individuals age 50 or over will increase from $6,000 to $6,500. The Social Security Administration also recently announced that the Social Security wage base will increase from $132,900 for 2019 to $137,700 for 2020.

Listed below are the principal limits applicable for 2020 and 2019.

Limit	2020	2019
Compensation Limit	$285,000	$280,000
Elective Deferrals (401(k), 403(b), 457(b))	$19,500	$19,000
Catch-up Contributions	$6,500	$6,000
Defined Contribution Plan 415 Limit	$57,000	$56,000
Defined Benefit Plan 415 Limit	$230,000	$225,000
Highly Compensated Employee	$130,000	$125,000
Social Security Wage Base	$137,700	$132,900
SIMPLE Plan Limit	$13,500	$13,000
SIMPLE Catch-up Contributions	$3,000	$3,000