Contribution Limits

Contribution Limits

Every Year, The IRS sets limits on the maximum amount you can contribute to your 401K and other retirement savings account. The limitations are changed based on the increase in the cost of living index. It’s good news for those who contribute to retirement savings plans. The following table illustrates various limits for 401k contributions for the last 3 years.

Type of Limitation

2020

2019

2018

Type of Limitation

Elective Deferrals

(401(k) and 403(b); not including adjustments and catch-ups)

2020

$19,500

2019

$19,000

2018

$18,500

Type of Limitation

457(b)(2) and 457(c)(1) Limits

(not including catch-ups)

2020

$19,500

2019

$19,000

2018

$18,500

Type of Limitation

Section 414(v) Catch-Up Deferrals

to 401(k), 403(b), 457(b), or SARSEP Plans

2020

$6,500

2019

$6,000

2018

$6,000

Type of Limitation

Defined Benefit Plans

2020

$230,000

2019

$225,000

2018

$220,000

Type of Limitation

Defined Contribution Plans

(annual additions limit)

2020

$57,000

2019

$56,000

2018

$55,000

Type of Limitation

Annual Compensation Limit

2020

$285,000

2019

$280,000

2018

$275,000

Type of Limitation

Highly Compensated Employee (“HCEs”)

2020

$130,000

2019

$125,000

2018

$120,000