Cost of Living Adjustment (COLA) Limit
The IRS has released limits for Cost of Living Adjustments (COLAs) and the Social Security Administration has released the Social Security limits for 2020. The limits for 2020 and 2019 are shown in the table below.
| Code Sec. | 2020 | 2019 | |
|---|---|---|---|
| Max benefit for DB plan | 415(b)(1)(A) | $230,000 | $225,000 |
| Max contribution for DC plan | 415(c)(1)(A) | $57,000 | $56,000 |
| Elective deferrals limit | 402(g)(1) | $19,500 | $19,000 |
| Catch-up contributions limit | 414(v) | $6,500 | $6,000 |
| Highly compensated employee limit | 414(q)(1)(B)(i) | $130,000 | $125,000 |
| Annual compensation limit | 401(a)(17) | $285,000 | $280,000 |
| IRA contributions | 219(b)(5)(A) | $6,000 | $6,000 |
| IRA catch-up limit | 219(b)(5)(B) | $1,000 | $1,000 |
| Deferral limits for DC plans of state and local governments | 457(b)(2) & 457(c)(1) | $19,500 | $19,000 |
| Definition of key employee in top-heavy plan | 416(i)(1)(A)(i) | $185,000 | $180,000 |
| HSA contribution limit (single) | $3,550 | $3,500 | |
| HSA contribution limit (family) | $7,100 | $7,000 | |
| HSA catch-up limit | $1,000 | $1,000 | |
| FSA contribution limit | $2,750 | $2,700 | |
| Social Security Wage Base | $137,700 | $132,900 |
