401(k) Plan Limits
|
Defined Contribution Plans |
2020 |
2019 |
Change |
Maximum employee elective deferral
|
$19,500 | $19,000 | +$500 |
Employee catch-up contribution (if age 50 or older by year-end) 1
|
$6,500 | $6,000 | +$500
|
Maximum employee elective deferral plus catch-up contribution (if age 50 or older by year end)
|
$26,000 | $25,000 | +$1,000
|
Defined contribution maximum limit, all sources (employee + employer)
2
|
$57,000 | $56,000 | +$1,000 |
Defined contribution maximum limit (if age 50 or older by year end); maximum contribution all sources plus catch-up |
$63,500 | $62,000 | +$1,500 |
Employee compensation limit for calculating contributions
|
$285,000 | $280,000 | +$5,000 |
Key employees' compensation threshold for nondiscrimination testing 3
|
$185,000 | $180,000
| +5,000 |
Highly compensated employees’ threshold for nondiscrimination testing 4
|
$130,000 | $125,000 | +5,000 |
Source: IRS Notice 2019-59.
HSA and HDHP Limits
|
Health Savings Accounts (HSAs) and High-Deductible Health Plans (HDHPs) |
2020 |
2019 |
Change |
HSA contribution limit
(employer + employee) |
Self-only: $3,550
Family: $7,100 | Self-only: $3,500
Family: $7,000 | Self-only: +$50
Family: +$100 |
HSA catch-up contributions
(age 55 or older) |
$1,000
| $1,000 | No change
|
HDHP minimum deductibles
|
Self-only: $1,400
Family: $2,800 | Self-only: 1,350
Family: $2,700 | Self-only: +$50
Family: +$100 |
HDHP maximum out-of-pocket amounts (deductibles, co-payments and other amounts, but not premiums)
|
Self-only: $6,900
Family: $13,800 | Self-only: $6,750
Family: $13,500 | Self-only: +150
Family: +$300 |
Source: IRS Notice 2019-25.
Health FSA Limits
Health Care Flexible Spending Accounts (Health FSAs) and Limited-Scope (Vision/Dental) FSAs
|
2020 |
2019 |
Change |
Maximum salary deferral contribution
|
$2,750 | $2,700
| +$50
|
Source: IRS Notice 2019-44.
QSEHRA Limits
|
Qualified Small Employer Health Reimbursement Arrangements (QSEHRAs) |
2020 |
2019 |
Change |
Maximum payments and reimbursements through the QSEHRA
|
Self-only: $5,250
Family: $10,600 | Self-only: $5,150
Family: $10,450 | Self-only: +$100
Family: +$150 |
Source: IRS Notice 2019-44.
Commuter Transit and Parking Limits
Qualified Transportation Benefit Tax Exclusion (monthly limits) |
2020 |
2019 |
Change |
Transit passes and van pool services (employer + employee)
|
$270 | $265
| +$5
|
Qualified parking
|
$270 | $265
| +$5
|
Source: IRS Notice 2019-44.
Earnings Subject to Social Security Payroll Tax
Social Security (FICA) Payroll Tax |
2020 |
2019 |
Change |
Maximum earnings subject to Social Security 12.4% FICA payroll tax (6.2% paid by employer and 6.2% paid by employee)
|
$137,700 | $132,900
| +$4,800
|
Source: Social Security Administration.