The IRS has announced the 2020 cost-of-living adjustments (COLAs), which impact retirement plans for more than 67 million Americans. In addition, the Social Security Administration announced the 2020 social security wage base will be $137,700, which reflects a 3.6% increase from 2019. They included a fact sheet to show the effect of the various automatic adjustments.
Most of the 2020 limitations increased over 2019, although few of them remained the same. We’ve compiled a side-by-side comparison on the dollar limitations for benefits and contributions over the past three years.
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Contact your BMF Advisor if you have questions on these dollar limitations or to discuss your 2019 tax planning strategy.
