2020 contribution limits
December 17, 2019
Contribution maximums and other dollar limits are readjusted annually based on inflation.
The table below shows the allowable contribution amounts and dollar limits for 2020 and 2019.
Retirement plan contribution and dollar limits
|401(k) deferrals (total traditional and Roth employee contributions)||$19,500||$19,000|
|Annual additions limit for DC plans||$57,000*||$56,000*|
|Annual compensation limit||$285,000||$280,000|
|Lookback year† compensation for Highly Compensated Employees (HCEs)||$130,000||$125,000|
|Taxable wage base for Social Security||$137,700||$132,900|
|Taxable wage base for Medicare||Unlimited||Unlimited|
* The DC annual additions limit is effective for limitation years ending in the calendar year.
† Use current lookback year compensation to determine HCEs for the following year. For example, use the 2019 lookback compensation to determine the HCEs for the plan year beginning in 2020.
Investors should carefully consider investment objectives, risks, charges and expenses. This and other important information is contained in the fund prospectuses and summary prospectuses, which can be obtained from a financial professional and should be read carefully before investing.