Each year the U.S. government adjusts the limits for qualified plans and Social Security to reflect cost-of-living adjustments and changes in the law. Many of these limits are based on the “plan year” as defined in your plan’s document. The elective deferral and catch-up limits are always based on the calendar year.
| 2021 | 2020 | 2019 | |
|---|---|---|---|
| Compensation | $290,000 | $ 285,000 | $ 280,000 |
| Limits on Benefits and Contributions: | |||
| Defined contribution plans | $58,000 | $ 57,000 | $ 56,000 |
| Defined benefit plans | $230,000 | $ 230,000 | $ 225,000 |
| 401(k), 403(b) and 457 plan elective deferrals | $19,500 | $ 19,500 | $ 19,000 |
| SIMPLE plan elective deferrals | $13,500 | $ 13,500 | $ 13,000 |
| IRA | $6,000 | $ 6,000 | $ 6,000 |
| Catch-up contributions: | |||
| 401(k), 403(b) and 457 plans | $6,500 | $ 6,500 | $ 6,000 |
| SIMPLE plans | $3,000 | $ 3,000 | $ 3,000 |
| IRA | $1,000 | $ 1,000 | $ 1,000 |
| “Highly Compensated” Definition | $130,000 | $ 130,000 | $ 125,000 |
| “Key Employee” Definition | |||
| Officer | $185,000 | $ 185,000 | $ 180,000 |
| 1% Owner | $150,000 | $ 150,000 | $ 150,000 |
| Social Security taxable wage base | $142,800 | $ 137,700 | $ 132,900 |