Cost-of-living adjustments affecting dollar limitations for pension plans for 2020, the IRS announced November 6. Changes include an increase in the limitation on the annual benefit under a defined benefit plan to $230,000 from $225,000, an increase in the limitation on the exclusion for elective deferrals to $19,500 from $19,000, and an increase in the catch-up contribution limit for employees aged 50 and over who participate in qualified retirement plans to $6,000 from $6,500. [Notice 2019-59, 2018-46 I.R.B. __ (Nov. 18, 2019); IR-2019-179 (Nov. 6, 2019)]
Reference:
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