By Doug Nickerson, CPA, CGFM, CFE, CIA, CCA | Business Assurance & Advisory Services Partner
IRS announced cost of living adjustments affecting dollar limitations for pension plans and other retirement-related items
On November 6, 2019, the Internal Revenue Service (IRS) announced cost of living adjustments affecting dollar limitations for pension plans and other retirement-related items for tax year 2020. The IRS issued technical guidance detailing these items in Notice 2019-59.
Highlights of the significant changes for 2020 as compared to 2019
Social Security Program Changes
Additionally, in October 2019 the Social Security Administration (SSA) announced its annual changes to the Social Security program effective January 1, 2020. A significant change is the increase of the taxable wage base to $137,700 for 2019. The tax rate will remain the same at 6.2%.
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The information contained within this article is provided for informational purposes only and is current as of the date published. Online readers are advised not to act upon this information without seeking the service of a professional accountant, as this article is not a substitute for obtaining accounting, tax, or financial advice from a professional accountant.