Source: https://quinnscommentary.com/2020/01/04/2020-irc-retirement-savings-limits/
Timestamp: 2020-01-28 13:06:11
Document Index: 610087309

Matched Legal Cases: ['§ 415', '§ 414', '§ 401', '§ 408', '§ 414', '§ 401', '§ 408', '§ 1', '§ 1', '§ 219', '§ 219', '§ 219']

2020 IRC retirement savings limits. – QUINNSCOMMENTARY
2020 IRC retirement savings limits.
January 4, 2020 rdquinn At Work, Government, Retirement Leave a comment
For a participant who separated from service before January 1, 2020, the participant’s limitation under a defined benefit plan under § 415(b)(1)(B) is computed by multiplying the participant’s compensation limitation, as adjusted through 2019, by 1.0176.
The dollar limitation under § 414(v)(2)(B)(i) for catch-up contributions to an applicable employer plan other than a plan described in § 401(k)(11) or § 408(p) for individuals aged 50 or over is increased from $6,000 to $6,500. The dollar limitation under § 414(v)(2)(B)(ii) for catch-up contributions to an applicable employer plan described in § 401(k)(11) or
§ 408(p) for individuals aged 50 or over remains unchanged at $3,000.
1 Notice 2017-64, 2017-45 I.R.B. 486, raised this limit from $125,000 to $130,000 although
§ 1.401(a)(9)-6, A-17(d)(2) provides for increases of the $125,000 limitation only in multiples of $10,000. Notice 2018-83, 2018-47 I.R.B. 774, indicated that this limit would remain at $130,000 until it would be adjusted to $135,000 pursuant to § 1.401(a)(9)-6, A-17(d)(2), and would be adjusted only in increments of $10,000 after that adjustment. Accordingly, future adjustments to this limit (which has been raised to $135,000 for 2020) will be made in increments of $10,000.
Accordingly, under § 219(g)(2)(A), the deduction for taxpayers making contributions to a traditional IRA is phased out for single individuals and heads of household who are active participants in a qualified plan (or another retirement plan specified in § 219(g)(5)) and have adjusted gross incomes (as defined in § 219(g)(3)(A)) between $65,000 and $75,000, increased from between $64,000 and $74,000. For married couples filing jointly, if the spouse who makes the IRA contribution is an active participant, the income phase- out range is between $104,000 and $124,000, increased from between $103,000 and $123,000. For an IRA contributor who is not an active participant and is married to someone who is an active participant, the deduction is phased out if the couple’s income is between $196,000 and $206,000, increased from between $193,000 and $203,000. For a married individual filing a separate return who is an active participant, the phase-out range is not subject to an annual cost-of-living adjustment and remains $0 to $10,000.
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