2020 Cost-of-Living Adjustments (COLAs)
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.
Contact your BMF Advisor if you have questions on these dollar limitations or to discuss your 2019 tax planning strategy.
Cindy H. Mitchell?>
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