The IRS has announced the 2021 annual dollar limitations for retirement plans based on the applicable cost-of-living adjustment guidelines. The annual limit for elective deferrals to 401(k) plans and 403(b) plans will remain unchanged at $19,500, and the annual limit for catch-up contributions for individuals age 50 or older also will remain unchanged at $6,500. The Social Security Administration also recently announced that the Social Security wage base will increase from $137,700 for 2020 to $142,800 for 2021.
Listed below are the principal limits applicable for 2021 and 2020.
|
Limit
|
2021
|
2020
|
|
Compensation Limit
|
$290,000
|
$285,000
|
|
Elective Deferrals (401(k) plans, 403(b) plans, 457(b) plans)
|
$19,500
|
$19,500
|
|
Catch-up Contributions (plans other than SIMPLE plans)
|
$6,500
|
$6,500
|
|
Defined Contribution Plan 415 Limit
|
$58,000
|
$57,000
|
|
Defined Benefit Plan 415 Limit
|
$230,000
|
$230,000
|
|
Highly Compensated Employee
|
$130,000
|
$130,000
|
|
Social Security Wage Base
|
$142,800
|
$137,700
|
|
SIMPLE Plan Limit
|
$13,500
|
$13,500
|
|
SIMPLE Catch-up Contributions
|
$3,000
|
$3,000
|
[View source.]
