Retirement Topics - Defined Benefit Plan Benefit Limits



In general, the annual benefit for a participant under a defined benefit plan cannot exceed the lesser of:

  1. 100% of the participant's average compensation for his or her highest 3 consecutive calendar years, or
  2. $230,000 for 2020 ($225,000 for 2019)

The dollar amounts are subject to cost-of-living adjustments in future years.

Additional resources