T20-0143 - Limit Maximum Defined-Contribution before Catch-Up Contributions to $15,000, Baseline: Current Law with TCJA Permanently Extended, Distribution of Federal Tax Change by Expanded Cash Income Percentile, 2020
The proposal would change the maximum combined employer and employee contribution limit before catch-up contributions to $15,000 per employee. Catch-up contributions remain as under the current law. Tax liability changes include not only current-year changes in income and payroll tax liabilities but also changes in future taxes related to current-year contributions under the baseline. Baseline is the law in place as of December 18, 2019, with the Tax Cuts and Jobs Act of 2017 (TCJA) permanently extended.
![](https://www.taxpolicycenter.org/sites/default/files/model-estimates/images/t20-0143_0.png)