2021 IRS Pension Plan Limits
The Internal Revenue Service (IRS) recently published its cost-of-living adjustments for the 2021 tax year that will affect dollar limits for pension plans and other retirement-related taxes.
For a detailed list of some of the pension plan limitations, please see the table below. You can also visit the IRS website for more information.
| Code Section | 2021 | 2020 |
| Elective deferral (contribution) limit under Code section 402(g) | $19,500 | $19,500 |
| Catch-up contribution limit under Code section 414(v)(2)(B)(i) | $6,500 | $6,500 |
| Annual compensation limit under Code section 401(a)(17) | $290,000 | $285,000 |
| Maximum defined benefit annuity limit under Code section 415(b)(1)(A) | $230,000 | $230,000 |
| Maximum defined contribution annual additions limit under Code section 415(c)(1)(A) | $58,000 | $57,000 |
| Highly compensated employee threshhold under Code section 414(q)(1)(B) | $130,000 | $130,000 |
| Annual compensation limit under Code section 401(a)(17), 404(l), 408(k)(3)(C),and 408(k)(6)(D)(ii) | $290,000 | $285,000 |
| Dollar limitation concerning the definition of key employee in a top-heavy plan under Code section 416(i)(l)(A)(i) | $185,000 | $185,000 |
| Allowed cost of living adjustments to the compensation limitation under Code section 401(a)(17) | $430,000 | $425,000 |
| Deferred compensation plans of state and local governments and tax-exempt organizations under Code section 457(e)(15) | $19,500 | $19,500 |
| Compensation amounts of the income Tax Regulations concerning the definition of “control employee” for fringe benefit valuation purposes under Code section 1.61-21(f)(5)(i) | $115,000 | $115,000 |
| Compensation regarding simplified employee pensions (SEPs) under Code section 408(k)(2)(C) | $650 | $600 |
| Limitation regarding SIMPLE retirement accounts under Code section 408(p)(2)(E) | $13,500 | $13,500 |
| Deductible amount for an individual making qualified retirement contributions under Code section 219(b)(5)(A) | $6,000 | $6,000 |