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|
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