On November 6, 2019, the IRS announced in Notice 2019-59 cost of living adjustments to the qualified plan dollar limits for 2020. Below is a summary of the limits that are generally relevant for most retirement plans.

Effective January 1, 2020:

• The elective deferral limit for 401(k), 403(b), and eligible 457(b) plans is increased from $19,000 to $19,500.
  
  
• The catch-up contribution limit for those age 50 or older is increased from $6,000 to $6,500.
  
  
• The dollar limit on the annual benefit under a defined benefit plan is increased from $225,000 to $230,000.
  
  
• The dollar limit on annual allocations under a defined contribution plan is increased from $56,000 to $57,000.
  
  
• The annual compensation limit is increased from $280,000 to $285,000.
  
  
• The annual compensation limit for eligible participants in certain governmental plans that, as of July 1, 1993, allowed for cost of living adjustments to the annual compensation limit in effect at that time is increased from $415,000 to $425,000.
  
  
• The dollar threshold for "highly compensated employee" status used in performing various nondiscrimination tests is increased from $125,000 to $130,000.
  
  
• The dollar threshold for "key employee" status for officers used in performing the "top heavy" test is increased from $180,000 to $185,000.

Additionally, the Social Security Administration announced on October 10, 2019, that, effective January 1, 2020, the Social Security wage base will increase from $132,900 to $137,700.