Carl Marks is employed by two unrelated employers, and he participates in a TSA at one job and in a 401(k) plan at the other job. Assuming Carl is contributing the maximum amount allowable to his TSA, which one of the following statements correctly describes the basic contribution limitation applicable to Carl's participation in both the TSA and the 401(k) plan?

The limit on elective deferrals to each plan is $19,000; he can defer a total of $38,000.

The maximum annual addition to each of his accounts is the lesser of $56,000 or 100% of his compensation.

Employees are allowed to deferthe lesser of 100% of annual compensation or $56,000, in the aggregate to both plans.

The maximum annual addition for both plans combined may not exceed 25% of compensation.