IRS Announces 2021 Pension Plan Limits

The Internal Revenue Service recently announced cost of living adjustments affecting dollar limitations for pension plans and other retirement-related items for Tax Year 2021. Highlights include:

401k Plan Limits for Plan Year

2021

2020

2019

2018

401k Elective Deferrals $19,500 $19,500 $19,000 $18,500
Annual Defined Contribution Limit $58,000 $57,000 $56,000 $55,000
Annual Compensation Limit $290,000 $285,000 $280,000 $275,000
Catch-up Contribution Limit $6,500 $6,500 $6,000 $6,000
Highly Compensated Employees $130,000 $130,000 $125,000 $120,000

Non-401k Related Limits 

2021

2020 

2019 

2018

403(b)/457 Elective Deferrals $19,500 $19,500 $19,000 $18,500
SIMPLE Employee Deferrals $13,500 $13,500 $13,000 $12,500
SIMPLE Catch-up Deferral $3,000 $3,000 $3,000 $3,000
SEP Minimum Compensation $650 $600 $600 $600
SEP Annual Compensation Limit $290,000 $285,000 $280,000 $275,000
Social Security Wage Base $142,800 $137,700 $132,900 $128,400

 

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