2020 vs. 2021 retirement plan limits
Type of limitation |
2020 limit | 2021 limit |
| Elective deferrals to 401(k), 403(b) and 457(b) plans | $19,500 | $19,500 |
| Annual benefit for defined benefit plans | $230,000 | $230,000 |
| Contributions to defined contribution plans | $57,000 | $58,000 |
| Contributions to SIMPLEs | $13,500 | $13,500 |
| Contributions to IRAs | $6,000 | $6,000 |
| Catch-up contributions to 401(k), 403(b) and 457(b) plans | $6,500 | $6,500 |
| Catch-up contributions to SIMPLEs | $3,000 | $3,000 |
| Catch-up contributions to IRAs | $1,000 | $1,000 |
| Compensation limit for benefit purposes for qualified plans and SEPs | $285,000 | $290,000 |
| Minimum compensation for SEP coverage | $600 | $650 |
| Highly compensated employee threshold | $130,000 | $130,000 |
| Minimum income for “key employee” status for top-heavy calculation | $185,000 | $185,000 |
| Income subject to Social Security tax | $137,700 | $142,800 |
As always, we hope you enjoy this edition of our newsletter and we look forward to receiving your feedback. Should you have any questions regarding the information contained in the attached materials or our Employee Benefit Plan Services, please feel free to contact me directly.
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About the Author: Michael Giess
Michael is a Partner in the Audit and Business Advisory Services Group, joining Insero from PricewaterhouseCoopers. He has significant experience servicing private and public companies in the manufacturing, service, retail, and wholesale/distribution sectors.
Michael also served as Director of Internal Audit for an upstate New York company where he was responsible for establishing an internal audit function and developing the overall audit plan.
