2020 Cost of Living Adjustments for Pension Plans

2020 Cost of Living Adjustments for Pension Plans

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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

2020 Pension and Related Limits | Keiter CPAs

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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Keiter is focused on keeping you updated on new and changing regulations that may impact you and your business. Questions on this topic? Contact your Keiter representative or Email | Call: 804.747.0000


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.


About the Author

Doug shares his real estate and construction accounting insights with his clients to help them achieve their financial goals. He is a member of Keiter’s Real Estate and Construction team. Doug has over 18 years of experience in corporate accounting and public accounting providing audit and consulting services. Read more of Doug’s insights on our blog.

More Insights from Doug K. Nickerson, CPA, CGFM, CFE, CIA, CCA

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