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July
30

2021 IRS Pension Limits

Confused about IRS pension limits? Have you ever wondered how much you can contribute to your retirement plan and if there are any limitations?

The tax law places limits on the dollar amount of contributions to retirement plans and IRAs and the amount of benefits under a pension plan. IRC Section 415 requires the limits to be adjusted annually for cost-of-living increases. 

IRAs  2021  2020  2019 
IRA Contribution Limit  $6,000  $6,000  $6,000 
IRA Catch-Up Contributions  1,000  1,000  1,000 
Traditional IRA AGI Deduction Phase-out Starting at  2021  2020  2019 
Joint Return  105,000  104,000  103,000 
Single or Head of Household  66,000  65,000  64,000 
SEP  2021  2020  2019 
SEP Minimum Compensation  650  600  600 
SEP Maximum Contribution  58,000  57,000  56,000 
SEP Maximum Compensation  290,000  285,000  280,000 
SIMPLE Plans  2021  2020  2019 
SIMPLE Maximum Contributions  13,500  13,500  13,000 
Catch-up Contributions  3,000  3,000  3,000 
401(k), 403(b), Profit-Sharing Plans, etc.  2021  2020  2019 
Annual Compensation  290,000  285,000  280,000 
Elective Deferrals  19,500  19,500  19,000 
Catch-up Contributions  6,500  6,500  6,000 
Defined Contribution Limits  58,000  57,000  56,000 
ESOP Limits  1,165,000 

230,000 

1,150,000 

230,000 

1,130,000 

225,000 

Other  2021  2020  2019 
HCE Threshold  130,000  130,000  125,000 
Defined Benefit Limits  230,000  230,000  225,000 
Key Employee  185,000  185,000  180,000 
457 Elective Deferrals  19,500  19,500  19,000 
Control Employee (board member or officer)  115,000  115,000  110,000 
Control Employee (compensation-based)  235,000  230,000  225,000 
Taxable Wage Base  142,800  137,700  132,900 

Topics for Retirement Plans 

We know this is a lot of information. Please feel free to contact us and we can help break this down and help you find what plan works for you and your organization.