STANLEY PENSION SERVICES

 Retirement Plan Limits 2020

Annual Compensation Limit:                    $285,000

401(k) Elective Deferrals:                          $   19,500

Catch-Up Contribution Limit:                  $    6,500

Annual Defined Contribution Limit:       $  57,000

Highly Compensated Employees:            $130,000

Key Employee:                                             $185,000

Social Security Wage Base:                       $137,700

 Individual 401(k) Plan -Good Medicine

Known by various names such as solo 401(K), self-employed 401(k)'s and individual 401(k)s, these plans combine the best elements of a profit sharing and traditional 401(k) plan to offer a double dose of tax savings.

First Dose: Contribute up to 25% of your earned income

Second Dose: Make an Elective Deferral of up to $19,500, or $26,000 if you are age 50 or older for 2020.

The total 2020 contribution for you is $57,000, or if age 50 or older, $63,500.  If your spouse is an active participant, they can benefit in the same way.