IRS releases key retirement plan limits for 2021

IRS releases key retirement plan limits for 2021

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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

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