Summary

Qualified Retirement Plan Limits
You are here:

The IRS annually adjusts qualified retirement plan limits for increases in the cost of living.
The following table lists the 2021 and 2020 limits
.

Internal Revenue Code Limits

2021 2020
401(k) plan – elective deferrals $19,500 $19,500
403(b) plan – elective deferrals $19,500 $19,500
Governmental 457(b) plan – elective deferrals $19,500 $19,500
Catch-up contribution limit – 401(k), 403(b) and governmental 457(b) plans $6,500 $6,500
SIMPLE plan – elective deferrals $13,500 $13,500
SIMPLE plan – catch-up contributions $3,000 $3,000
Defined benefit plans – maximum annual annuity $230,000 $230,000
Defined contribution plans – maximum annual addition $58,000 $57,000
Maximum annual compensation – defined benefit plans, defined contribution plans and SEPs $290,000 $285,000
Annual compensation – definition of “highly compensated employee” $130,000 $130,000
Annual compensation  – “officer” or “key employee” definition $185,000 $185,000
Simplified Employee Pension (SEP) – minimum compensation $650 $600
Tax credit ESOP
5-year limit $1,165,000 $1,150,000
1-year extension $230,000 $230,000