IRS Announces Increase: 2020 Cost-of-Living Adjusted Limits

Written by Joanna Morrow

Joanna Morrow, Principal and Founder of Employer Benefits & Advice, is an employer consultant and advocate who has worked in the employee benefits industry for over two decades. She works diligently to help employers overcome obstacles in their business by sharing her expertise in Human Resources, Benefits & Compensation, Process Mapping, Risk Management and ERISA/DOL/IRS compliance. She is a licensed life and health insurance professional in the State of Arizona and is an active member of the National Association of Health Underwriters (NAHU).

IRS Announces Increase: 2020 Cost-of-Living Adjusted Limits

The Internal Revenue Service and Social Security Administration recently announced cost of living adjustments applicable to dollar limitations for qualified retirement plans, and other limits for tax year 2020. Some limits remain unchanged from 2019.

HR Managers, Third Party Administrators and financial professionals will want to make note of the new 2020 limits provided below: 

The 2020 limits reflect issuance of IRS Notice 2019-59 (November 6, 2019) and Social Security Administration Fact Sheet (October 10, 2019).

The IRS Notice 2019-59 can be viewed at:

https://www.irs.gov/pub/irs-drop/n-19-59.pdf

The Social Security Fact Sheet can be viewed at:

https://www.ssa.gov/news/press/factsheets/colafacts2020.pdf

If you would like additional information about these limits or discuss the impact to your 2020 employee benefit programs email me at [email protected] or call me at 602-903-4047.