Employee Benefit Plan Limits for 2020

Findley is pleased to provide you the following 2020 limits (and comparable 2019 figures) for various employee benefit plans and Social Security.

Employee Benefit Plans20192020
401(k) elective deferral dollar limit$ 19,000$ 19,500
403(b) elective deferral dollar limit 1$ 19,000$ 19,500
457 eligible plan maximum deferral limit$ 19,000$ 19,500
401(k), 403(b), state and local government 457, and 408(p)
catch-up elective deferral (must be at least age 50)
$ 6,000$ 6,500
Defined benefit plans – maximum annual benefit$ 225,000$ 230,000
Defined contribution plans – maximum annual addition$ 56,000$ 57,000
Annual compensation limit$ 280,000$ 285,000
Highly compensated employee 2$ 125,000$ 130,000
SIMPLE retirement accounts – maximum elective deferrals$ 13,000$ 13,500
Key Employee$ 180,000$ 185,000
Social Security20192020
Social Security taxable wage base 3
Exempt earnings under the Social Security earnings test
$ 132,900$ 137,700
Under Social Security retirement age (SSRA) 4,5$ 17,640$ 18,240
Year in which SSRA is attained (per month) 6$ 3,910$ 4,050
SSRA and olderallall

1 May be increased by as much as $3,000 in certain situations.
2 Compensation threshold used to determine next year’s HCEs.
3 Employers and employees each pay 6.2% Social Security tax on earnings up to this level. All earnings are subject to an additional 1.45% Medicare tax, which is also paid by both employers and employees. Medicare tax rate increases by .9% if the taxpayer’s AGI exceeds: $250,000 if filing a joint return; $125,000 if married filing separately, and $200,000 for any other filing status.
4 SSRA for those born 1943 through 1954 is 66. SSRA increases to age 67 for those with later birth years.
5 In general, $1 of the Social Security benefit is lost for each $2 of earnings over threshold before the year SSRA is attained.
6 In the year SSRA is attained, $1 of the Social Security benefit is lost for each $3 of earnings over the threshold during the months before the individual’s SSRA occurs.

Part D Standard Benefit20192020
Deductible$ 415$ 435
Initial Coverage Limit$ 3,820$ 4,020
Maximum out-of-pocket threshold$ 5,100$ 6,350
Spending before catastrophic coverage$ 7,653.75$ 9,038.75
Retiree drug subsidy (RD) amounts
Cost threshold
Cost limit

$ 415
$ 8,500


$ 435
$ 8,950

Health Savings Accounts20192020
Minimum deductible to be a qualified high deductible health plan
Self-only coverage
Family coverage

$ 1,350
$ 2,700

$ 1,400
$ 2,800
Maximum annual HSA contribution
(excluding catch-up contribution)
Self-only coverage
Family coverage

$ 3,500
$ 7,000

$ 3,550
$ 7,100
Annual catch-up contribution for individuals age55 or older (per person)$ 1,000$ 1,000
Out-of-pocket maximums
Self-only coverage
Family coverage

$ 6,750
$ 13,500

$ 6,900
$ 13,800

Posted November 6, 2019

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Category: Findley Post, Retirement Plans, Health and Group Benefits
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