Retirement Contribution Limits
The Internal Revenue Service recently announced the 2020 cost-of-living and required statutory limit adjustments applicable to retirement plans. The following limits become effective on January 1, 2020.
|Annual Limit per Individual||2019||2020||2021|
|Elective deferral limit under Code § 402(g)||$19,000||$19,500||$19,500|
|Age 50 catch-up contribution limit under Code § 414(v)||$6,000||$6,500||$6,500|
|Contributions to a defined contribution plan
the lesser of 100% of compensation or:
Eligible pay is defined as 100% of total earnings, or gross up by 40% if a parsonage is provided
For calendar year based on hire and termination dates provided.
Contributions payable can be paid semimonthly, monthly, quarterly, or annually
- The above results may be different if you use other calculation softwares or prorate methodologies
- Full Time Ministers: 11% of compensation, or current EBPH amount to the RCA 403b Retirement program, whichever is greater.
- Part Time Ministers: 11% of compensation to the RCA 403b Retirement program (EBPH amount does not apply.)
- Current Effective Buying Power per Household (EBPH):
- 2020: $7,061
- 2021: $7,106