Annual Contribution Limits for Qualified Retirement Plans: Learn about the annual limits for contributions to your qualified retirement plans, including 401(k), IRA, and other types of accounts, and how to make the most of your savings’ potential.
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 $)
| 2021 | 2020 | 2019 | 2018 | 2017 | |
| 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 |