Client Alert: 2020 Dollar Limitations for Employee Benefit Plans

Client Alerts Employee Benefits & Executive Compensation

The IRS annually adjusts the dollar limits for contributions and benefits in retirement and certain deferred compensation plans and for health and welfare plans. The IRS recently announced the new dollar limits for 2020. 


2019 Limit

2020 Limit

Maximum 401(k), 403(b) and 457(b) Elective Deferral



Maximum Catch-Up Contribution Age 50 and Older



Highly Compensated Employee Threshold



Maximum Compensation Used to Determine Contributions and Benefits



Defined Contribution Plan Annual Contribution Limit



Defined Benefit Plan Annual Benefit Limit



Top Heavy Key Employee Threshold



Health FSA



Dependent Care FSA (unchanged)



Health Savings Accounts



     Maximum Contributions



     Maximum Catch-Up Contribution Age 55 and Older (unchanged)



High Deductible Health Plan (HDHP)



     Minimum Deductibles



     Maximum Out-of-Pocket Amounts



If you have any questions about this Alert, please feel free to call (919.781.4000) or e-mail your Wyrick Robbins contact or one of the following members of our Employee Benefits and Executive Compensation group: Gray Hutchison ( or San Parikh (