News

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2021  Defined Contribution Plan Limits

Maximum employee elective deferral (401(k), 403b, 457)

$19,500 (unchanged from 2020)

Employee catch-up contribution (if age 50 or older by year-end)

$6,500 (unchanged from 2020)

Defined contribution maximum limit, all sources

$58,000 (2020 is $57,000)

Defined contribution maximum limit (if age 50 or older by year end); maximum contribution all sources plus catch-up

$64,500 (2020 is $63,500)

Employee compensation limit for calculating contributions

$290,000 (2020 is $285,000)

Compensation limit of "key employees" in a top-heavy plan

$185,000 (unchanged from 2020)

Compensation limit of "highly compensated employees" (HCE threshold)

$130,000 (unchanged from 2020)