The Internal Revenue Code provides for dollar limitations on benefits and contributions under qualified retirement plans. IRC Section 415 requires the limits to be adjusted annually for cost-of-living increases.
| Description of Limit | 2019 | 2020 | |||
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| 401(k) Elective Deferrals | $ | 19,000 | $ | 19,500 | |
| 403(b)/457 Elective Deferrals | $ | 19,000 | $ | 19,500 | |
| Annual Compensation Limits | $ | 280,000 | $ | 285,000 | |
| Annual Defined Contribution Limits | $ | 56,000 | $ | 57,000 | |
| Catch-up Contributions | $ | 6,000 | $ | 6,500 | |
| Highly Compensated Employees | $ | 125,000 | $ | 120,000 | |
| Social Security Wage Base | $ | 132,900 | $ | 128,400 | |
| Annual Benefit Limit (Defined Benefit Plans) | $ | 225,000 | $ | 220,000 | |
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| Source: Internal Revenue Service. | |||||