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 |