By Doug K. Nickerson, CPA, CCA, 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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About the Author
Doug K. Nickerson, CPA, CCA, Partner
Doug shares his real estate and construction accounting insights with his clients to help them achieve their financial goals. Doug is the leader of Keiter’s Construction Industry team and is a member of Keiter’s Real Estate, Healthcare & Medical Services, and Manufacturing Industry teams. Doug has over 18 years of experience in corporate accounting and public accounting providing audit and consulting services.
More Insights from Doug K. NickersonThe 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.
