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The 2020 dollar limits are as follows:

Limit	2019	2020
Defined Contribution Plan 415 Dollar Limit The dollar limitation for annual additions under defined contribution plans under IRC Section 415(c)(1)(A). EGTRRA amended this limitation on annual additions, which is the lesser of $40,000 (as adjusted for inflation) or 100% of compensation.	$56,000	$57,000
401(k) Elective Deferral Limit The limitation on cumulative elective deferrals to a 401(k) and 403(b) tax deferred annuity, as coordinated under IRC Section 402(g)(1).	$19,000	$19,500
Age 50+ Catch-up Limits The special catch-up available for individuals at least 50 years old during the year and make eligible pre-tax contributions to 401(k), 403(b), and governmental 457 plans.	$6,000	$6,500
Definition of Key Employee The compensation threshold used for determining key employees under IRS Section 416(i)(1)(A)(i).	$180,000	$185,000
Definition of Highly Compensated Employees The compensation threshold used for determining highly compensated employees under IRC Section 414(q)(1)(B).	$125,000	$130,000
Compensation Limit The annual limit of compensation that may be taken into account for contribution purposes in accordance with IRC Section 401(a)(17) (nongovernmental plan sponsors).	$280,000	$285,000
Taxable Wage Base Maximum amount of earnings subject to payroll tax.	$132,900	$137,700

This material was created to provide accurate and reliable information on the subjects covered. It is not intended to provide specific legal, tax or other professional advice.  The services of an appropriate professional should be sought regarding your individual situation.

Shayna Osborne, ERPA, APA, APR, QPA
Osborne & Associates, Inc.