Plan Limits

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