2021 DOLLAR LIMITATIONS ON BENEFITS AND CONTRIBUTIONS

Posted on: October 27th, 2020

The tax law places limits on the dollar amount of contributions to retirement plans and IRAs and the amount of benefits under a pension plan. IRC Section 415 requires the limits to be adjusted annually for cost-of-living increases.

 

2021

2020

2019

IRAs

IRA Contribution Limit

$6,000

$6,000

$6,000

IRA Catch-Up Contributions

$1,000

$1,000

$1,000

IRA AGI Deduction Phase-out Starting at

Joint Return

$105,000

$104,000

$103,000

Single or Head of Household

$66,000

$65,000

$64,000

SEP

SEP Minimum Compensation

$650

$600

$600

SEP Maximum Contribution

$58,000

$57,000

$56,000

SEP Maximum Compensation

$290,000

$285,000

$280,000

SIMPLE Plans

SIMPLE Maximum Contributions

$13,500

$13,500

$13,000

Catch-up Contributions

$3,000

$3,000

$3,000

401(k), 403(b), Profit-Sharing Plans, etc.

Annual Compensation

$290,000

$285,000

$280,000

Elective Deferrals

$19,500

$19,500

$19,000

Catch-up Contributions

$6,500

$6,500

$6,000

Defined Contribution Limits

$58,000

$57,000

$56,000

ESOP Limits

$1,165,000

$230,000

$1,150,000

$230,000

$1,130,000

$225,000

Other

HCE Threshold

$130,000

$130,000

$125,000

Defined Benefit Limits

$230,000

$230,000

$225,000

Key Employee

$185,000

$185,000

$180,000

457 Elective Deferrals

$19,500

$19,500

$19,000

Control Employee (board member or officer)

$115,000

$115,000

$110,000

Control Employee (compensation-based)

$235,000

$230,000

$225,000

Taxable Wage Base

$142,800

$137,700

$132,900

 

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