Employers and plan participants should carefully consider the investment objectives, risks, charges and expenses of the investment options offered under the retirement plan before investing. The prospectuses for the individual mutual funds and each available investment option in the group annuity contain this and other important information. Prospectuses may be obtained by calling 877.805.1127. Please read the prospectus carefully before investing. Investments are subject to market risk and fluctuate in value.
IRS Indexed Limits
The IRS indexed dollar limits to qualified retirement plans are provided in the table below. This is provided for informational purposes and is not intended as legal advice.
| Item | IRC Reference | 2019 Limit | 2020 Limit |
|---|---|---|---|
| 401(k) and 403(b) Employee Deferral Limit1 | 402(g)(1) | $19,000 | $19,500 |
| 457 Employee Deferral Limit | 457(e)(15) | $19,000 | $19,500 |
| Catch-up Contribution2 | 414(v)(2)(B)(i) | $6,000 | $6,500 |
| Defined Contribution Dollar Limit | 415(c)(1)(A) | $56,000 | $57,000 |
| Defined Benefit Dollar Limit | 415(b)(1)(A) | $225,000 | $230,000 |
| Compensation Limit3 | 401(a)(17); 404(l) | $280,000 | $285,000 |
| Highly Compensated Employee Income Limit4 | 414(q)(1)(B) | $125,000 | $130,000 |
| Key Employee Officer | 416(i)(1)(A)(i) | $180,000 | $185,000 |
| Social Security Taxable Wage Base | $132,900 | $137,700 |
1 Employee deferrals to all 401(k) and 403(b) plans must be aggregated for purposes of this limit. A lower limit applies to SIMPLE plans.
2 Available to employees age 50 or older during the calendar year. A lower limit applies to SIMPLE plans.
3 All compensation from a single employer (including all members of a controlled group) must be aggregated for purposes of this limit.
4 For the 2020 plan year, an employee who earns more than $125,000 in 2019 is an HCE. For the 2021 plan year, an employee who earns more than $130,000 in 2020 is an HCE.
Tax Credits For Retirement Plan Participants1
The chart below shows the percent of your contribution (up to $2,000) you are eligible to receive as a tax credit based on your annual adjusted gross income and filing status. See the IRS website for filing instructions.2
| Tax Credit | Married, Filing Jointly | Head of Household | All Other Filers |
|---|---|---|---|
| 50% | $0 - $39,000 | $0 - $29,250 | $0 - $19,500 |
| 20% | $39,001 - $42,500 | $29,251 - $31,875 | $19,501 - $21,250 |
| 10% | $42,501 - $65,000 | $31,876 - $48,750 | $21,251 - $32,500 |
| 0% | More than $65,000 | More than $48,750 | More than $32,500 |
1 The participant must be over the age of 18 and cannot be a full-time student or dependent.
2 The annual adjusted gross income limits will be adjusted for inflation. These limits are valid for 2020.