Qualified Plan Limits

 
2021
2020
Elective Deferrals (401(k) and 403(b); not including adjustments and catch-ups)
$19,500
$19,500
457(b)(2) and 457(c)(1) Limits (not including catch-ups)
$19,500
$19,500
Section 414(v) Catch-Up Deferrals to 401(k), 403(b), or SEP Plans
$6,500
$6,500
Limitation on annual benefits under Defined Benefit Plans under Sec. 415(b)(1)(A)
$230,000
$230,000
Limitation for Defined Contribution Plans under Sec. 415(c)(1)(A)
$58,000
$57,000
Annual Compensation Limit under Sections 401(a)(17), 404(I), 408(k)(3)(C)
$290,000
$285,000
Annual Compensation Limit for Grandfathered Participants in Governmental Plans Which Followed 401(a)(17) Limits (With Indexing) on July 1, 1993
$430,000
$425,000
Highly Compensated Employee under Sec. 414(q)(1)(B)
$130,000
$130,000
Key employee-officer compensation threshold for top-heavy plans [416(i)(1)(A)(i)]
$185,000
$185,000
Limitation under Sec. 408(p)(2)(E) regarding SIMPLE Retirement Accounts
$13,500
$13,500
Minimum compensation required to be eligible for SEP IRA
$650
$600
Maximum compensation that can be considered for SEP IRA
$290,000
$285,000
Dollar amount under Sec. 409(0)(1)(C)(ii) for determining the maximum account balance in an ESOP
$1,165,000
$1,150,000
Dollar amount used to determine the lengthening of 5-Year ESOP Period
$230,000
$230,000
Income subject to Social Security Tax
$142,800
$137,700
Social Security Tax for employees
6.20%
6.20%
Social Security Tax for self-employed workers
12.40%
12.40%
Medicare tax for employees and employers on earnings up to $200,000 ($250,000 if filing jointly)
1.45%
1.45%
Medicare tax for self-employed workers’ earnings up to $200,000 ($250,000 if filing jointly)
2.90%
2.90%
Additional Medicare tax for employees and/or self-employed workers on earnings in excess of $200,000 ($250,000 if filing jointly)
0.90%
0.90%
FICA Tax for employees and employers
7.65%
7.65%
FICA Tax for self-employed workers
15.30%
15.30%
The information presented here is not intended to be a comprehensive analysis. Cherry Bekaert Benefits Consulting is a benefits advisory firm and does not provide tax or legal advice. Individuals or Employers should consult with qualified legal and/or tax counsel for guidance in respect of matters of law, tax, and related regulation.