The IRS has issued Notice 2020-79 announcing the retirement plan limits for 2021.
Download this FYI Alert as a printable PDF
Retirement plan limits
The table below lists the key 2021 limits side by side with those in effect for 2020 — only two of these limits have increased from 2020 to 2021.
| 2021 | 2020 | |
| 401(k)/403(b) elective deferral maximum | $19,500 | $19,500 |
| §415 defined benefit dollar maximum | $230,000 | $230,000 |
| §415 defined contribution annual addition maximum | $58,000 | $57,000 |
| §457(b) nonqualified deferred compensation limit | $19,500 | $19,500 |
| §401(a)(17) annual compensation limit | $290,000 | $285,000 |
| §414(q) highly compensated employee limit | $130,000 | $130,000 |
| §414(v) catch-up contribution limit | $6,500 | $6,500 |
| §416(i) top-heavy officer limit | $185,000 | $185,000 |
In closing
Our For Your Reference, a wallet-sized booklet showing retirement plan and other benefit limits, as well as various key Social Security and Medicare figures, will be available shortly from your consultant.
Volume 43 | Issue 67