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.
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2021 |
2020 |
2019 |
|
|
IRAs |
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| 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 |
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| Joint Return |
$105,000 |
$104,000 |
$103,000 |
| Single or Head of Household |
$66,000 |
$65,000 |
$64,000 |
|
SEP |
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| 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 |
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| 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. |
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| 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 |
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| 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 |