IRS Retirement Plan Contribution Limits
December 23, 2020
To make it possible for voluntary retirement savings to keep up with inflation, the various numerical limits embedded within qualified retirement plans are indexed for inflation.
The IRS has announced that the retirement plan contribution limits in the chart below will apply as shown.
| Plan | 2019 Limits | 2020 Limits | 2021 Limits |
|---|---|---|---|
| 401(k) and 403(b) employee deferral limit | $19,000 | $19,500 | $19,500 |
| 457 employee deferral limit (most plans) | $19,000 | $19,500 | $19,500 |
| Catch-up contribution dollar limit (50 and better) | $6,000 | $6,500 | $6,500 |
| Defined contribution dollar limit | $56,000 | $57,000 | $58,000 |
| Defined benefit dollar limit | $225,000 | $230,000 | $230,000 |
| Compensation limit | $280,000 | $285,000 | $290,000 |
| Highly compensated employee income limit | $125,000 | $130,000 | $130,000 |
| Key employee in a top-heavy plan | $180,000 | $185,000 | $185,000 |
| Roth & Traditional IRA | $6,000 | $6,000 | $6,000 |
| Roth & Traditional IRA catch-up (50 and better) | $1,000 | $1,000 | $1,000 |
Legal, Investment and Tax Notice: This information is not intended to be and should not be treated as legal advice or tax advice. Readers should under no circumstances rely upon this information as a substitute for their own research or for obtaining specific legal or tax advice from their own counsel.
This content is for informational purposes only. Readers should under no circumstances rely upon this information as a substitute for their own research or for obtaining specific advice from their own counsel.