2021 Contribution Limits

The IRS has announced cost of living adjustments affecting dollar limitations for pension plans and other retirement-related items for tax year 2020. For company retirement plans, the most recognized highlights include:

The following limits are going up for 2021:

  • The annual additions limit for defined contribution plans increases to $58,000

  • The annual compensation limit increases to $290,000

  • The Social Security Wage Base increases to $142,800

The following limits will remain the same for 2021:

  • The salary deferral limit for 401(k), 403(b), and 457 plans remains at $19,500

  • The catch- up contribution limits for 401(k) plans remains at $6,500

  • The annual additions limit for defined benefit plans remains at $230,000

  • The compensation limit for determining who is a highly compensated employee remains at $130,000

Review the full list of contribution limit changes below and share with your plan participants!

Download 2021 Contribution Limits

Featured Posts
Recent Posts
  • Facebook Basic Square
  • Twitter Basic Square
  • Google+ Basic Square
Search By Tags
Follow Us


PWMG 401(k) Advisors


324 Grove Street
Second Floor

Worcester, MA 01605


1350 Main Street
10th Floor, Suite 1008

Springfield, MA 01103

Phone: (855) 508-401k
Fax: (508) 519-8426

Web: www.pwmg401k.com

Email: info@pwmg401k.com

Check the background of this firm on FINRA’s BrokerCheck.
Securities and Advisory Services offered through LPL Financial, a Registered Investment Advisor. Member FINRA/SIPC

The LPL Financial Registered Representatives associated with this site may only discuss and/or transact securities business with residents of the following states: AL, AZ, CA, CO, CT, DC, DE, FL, GA, MA, MD, ME, NC, NH, NJ, NM, NY, OH, PA, RI, SC, TX, VA, VT, WA,