2021 Retirement Contribution Limits

Every new year is an opportunity to reflect on the past, plan for the coming year, and look forward to the future. There is no question we are stepping into 2021 with an eye towards hope and good things to come.

Those good things to come, whether in 2021, or fifteen, or even thirty years from now, include retirement. No matter your time horizon, making healthy decisions each year to maximize your income in retirement is always a great New Year’s Resolution.

The maximum IRS retirement plan contributions limits have been announced for 2021. We encourage you to maximize your contributions now to maximize your future plans.

2021 Retirement Plan & Account Limits

Plan Limits20212020
401(k) Elective Deferral Limit$19,500$19,500
Catch-Up Contribution Limit$6,500$6,500
Annual Defined Contribution Limit$58,000$57,000
Annual Compensation Limit$290,000$285,000
Annual Defined Benefit Limit$230,000$230,000
Highly Compensated Employee Dollar Limit$130,000$130,000
Key Employee Dollar Limit$185,000$185,000
403(b)/457 Elective Deferral Limit$19,500$19,500
SIMPLE Employee Deferral Limit$13,500$13,500
SIMPLE Catch-Up Limit$3,000$3,000
SEP Minimum Compensation Limit$650$650
SEP Annual Compensation Limit$290,000$285,000
IRA Contribution Limit$6,000$6,000
IRA Catch-Up Contribution Limit$1,000$1,0000

2021 Related Limits

Social Security Taxable Wage Base$142,800$137,700
Self-Only HSA Contribution Limit$3,600$3,550
Family HSA Contribution Limit$7,200$7,100
HSA Catch-Up Contribution Limit$1,000$1,000

Greenwood Capital is an SEC registered investment advisory firm. This material has been prepared for information purposes only, and is not intended to provide, and should not be relied on solely for tax, legal or accounting advice.

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