---
title: The 2020 Retirement Plan Contribution Limits
description: The 2020 401(k) and IRA contribution limits have been released by the IRS. This list includes updates to compensation and benefits limits, as well as testing limits.
image: https://www.dwc401k.com/hubfs/Knowledge%20Center/Pillar%20Categories%202024/PNG%20-%20with%20category%20name/hero_rr_png_category.png
---

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![The 2020 Retirement Plan Contribution Limits](https://www.dwc401k.com/hs-fs/hubfs/Knowledge%20Center/Pillar%20Categories%202024/PNG%20-%20with%20category%20name/hero_rr_png_category.png?width=800&name=hero_rr_png_category.png)

# The 2020 Retirement Plan Contribution Limits

[ DWC ](https://www.dwc401k.com/blog/author/dwc) |

 Published: 11/6/2019 

|

[401(k) Plan](https://www.dwc401k.com/blog/topic/401k-plan), [403(b)](https://www.dwc401k.com/blog/topic/403b), [Defined Benefit](https://www.dwc401k.com/blog/topic/defined-benefit), [Defined Contribution](https://www.dwc401k.com/blog/topic/defined-contribution), [SIMPLE](https://www.dwc401k.com/blog/topic/simple), [401(k) Contribution Limits](https://www.dwc401k.com/blog/topic/401k-contribution-limits), [Plan Sponsor Requirements](https://www.dwc401k.com/blog/topic/plan-sponsor-requirements), [Regulatory Round-Up](https://www.dwc401k.com/blog/topic/regulatory-round-up)

The IRS has released the 2020 contribution limits! Since not everyone was awaiting them quite as eagerly as we were, here is a quick summary.

The good news is that both the 401(k) deferral limit and overall contribution/benefit limits increased, as did the maximum compensation limit. 

Here's a rundown of the 2020 limits:

## **Compensation and Benefit Limits **

- Annual compensation limit 
    - **Increases **from $280,000 to **$285,000**
- Salary deferral limit for 401(k) and 403(b) plans 
    - **Increases **from $19,0000 to **$19,500**
- Salary deferral limit for SIMPLE IRA 
    - **Increases **from $13,000 to **$13,500**
- Salary deferral limit for 457 plans 
    - **Increases** from $19,000 to **$19,500**
- Catch-up contribution limit for 401(k) plans 
    - **Increases** from $6,000 to **$6,500**

- Catch-up contribution limit for SIMPLE IRAs 
    - Remains **unchanged **at **$3,000** 
- Annual additions limit for defined contribution plans 
    - **Increases **from $56,000 to **$57,000**
- Annual additions limit for defined benefit plans 
    - **Increases **from $225,000 to **$230,000**
- Social Security Wage Base 
    - **Increases **from $132,900 to **$137,700**

## **Testing Limits**

- Highly compensated employee  
    - **Increases **from $125,000 to **$130,000**
- Key employee based on officer status  
    - **Increases **from $180,000 to **$185,000**
- Key employee based on 1% owner compensation 
    - Remains **unchanged**** **at **$150,000**

 You can find a chart of these limits from 2011 to 2020 **[here ](https://www.dwc401k.com/historical-contribution-testing-limits-chart)**in the DWC Knowledge Center.

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