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 Retirement Place > Summary of Retirement Plan Contribution and Deduction Limits 2020 & 2021 

Summary of Retirement Plans for Individuals, Small Business & Enterprise
Am I eligible to contribute to a retirement plan this year?

 

 

How much can I contribute to my retirement account this year?

Do I make too much money to contribute to an IRA or Roth?

View COLA adjusted dollar limitations on benefits and contributions below (IRA, 401(k), SEP, SIMPLE IRA, 403(b), 457(b), defined benefit):

 


IRAs - Traditional & Roth

2021

2020
IRA Contribution Limit $6,000 $6,000
IRA Catch-Up Contributions 1,000 1,000

Traditional IRA AGI Deduction Phase-out Starting at:

2021

2020
Joint Return 105,000 104,000
Single or Head of Household 66,000 65,000

SEP IRAs

2021

2020
SEP Minimum Compensation 650 600
SEP Maximum Contribution 58,000 57,000
SEP Maximum Compensation 290,000 285,000

SIMPLE Plans

2021

2020
SIMPLE Maximum Contributions 13,500 13,500
Catch-up Contributions 3,000 3,000

401(k), 403(b), Profit-Sharing Plans, etc.

2021

2020
Annual Compensation 290,000 285,000
Elective Deferrals 19,500 19,500
Catch-up Contributions 6,500 6,500
Defined Contribution Limits 58,000 57,000
ESOP Limits

1,165,000

230,000

1,150,000

230,000


Other Important Limits

2021

2020
HCE Threshold 130,000 130,000
Defined Benefit Limits 230,000 230,000
Key Employee 185,000 185,000
457 Elective Deferrals 19,500 19,500
Control Employee (board member or officer) 115,000 115,000
Control Employee (compensation-based) 235,000 230,000
Taxable Wage Base 142,800 137,700

Tax laws place limits on the dollar amount of contributions that you can make to retirement plans and IRAs as well as the amount of benefits under a pension plan. IRC Section 415 requires the limits to be adjusted annually for cost-of-living increases. Learn more about these limits and COLA adjustments via the IRS official website:

  • For more on limits by plan type please visit our individual pages for Traditional and Roth IRAs, 401(k), SEP, SIMPLE IRAs and defined benefit plans.
  • 2021 cost-of-living adjustments for pension plans and retirement-related items (IR-2020-244)
  • COLA Table PDF for prior years' dollar limitations and Internal Revenue Code references.

Source: IRS.gov

 

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Page Last Reviewed or Updated: 9-Feb-2021