The IRS has announced changes to retirement plan limits for 2021
Each year the Internal Revenue Service announces the cost-of-living adjustments applicable for all types of qualified retirement plans and IRAs. The various annual contribution limitations and other important indexes which govern all plans either remain unchanged year-over-year or may rise depending on whether the Consumer Price Index meets a threshold level dictating an increase.
For 2021, highlights include:
- The Annual Salary Deferral Contribution Limit for 401(k), 403(b) and 457 plans remained the same at $19,500.
- The Salary Deferral Catch-up Contribution Limit for employees aged 50 and over who participate in these plans also remained the same at $6,500.
- The Total Annual Contribution Limit (EE+ER) for defined contribution plans increases from $57,000 to $58,000.
- The Annual Compensation Limit increases from $285,000 to $290,000.
The Retirement Plan Company is pleased to present this table for your convenience. Contact Us for more assistance..
Annual Compensation and Contribution Limits for Qualified Retirement Plans
(Amount is in $)
|401(k) and 403(b) Deferral Limit||19,500||19,500||19,000||18,500||18,000|
|457 Deferral Limit||19,500||19,500||19,000||18,500||18,000|
|401(k), 403(b), 457 Catch-up Contribution Limit||6,500||6,500||6,000||6,000||6,000|
|SIMPLE Deferral Limit||13,500||13,500||13,000||12,500||12,500|
|SIMPLE Catch-up Contribution Limit||3,000||3,000||3,000||3,000||3,000|
|Annual Compensation Limit||290,000||285,000||280,000||275,000||270,000|
|Defined Benefit 415 Limit||230,000||230,000||225,000||220,000||215,000|
|Defined Contribution 415 Limit||58,000||57,000||56,000||55,000||54,000|
|Dollar Limit for HCEs||130,000||130,000||125,000||120,000||120,000|
|Dollar Limit for Key Employee||185,000||185,000||180,000||175,000||175,000|
|Social Security Taxable Wage Base||142,800||137,700||132,900||128,400||127,200|