Benefit Plan Limits

2021 EMPLOYEE BENEFIT PLAN LIMITS

The IRS recently released employee benefit plan limits for 2021.  There are several changes for 2021.

PLAN LIMITATIONS 2019 2020 2021
Annual Compensation Limit $280,000 $285,000 $290,000
Defined Contribution Maximum Annual Contribution $56,000 $57,000 $58,000
Annual §401(k) Employee Deferral Limit $19,000 $19,500 $19,500
Age 50 Catch-up Contributions to §401(k) Plan $6,000 $6,500 $6,500
Highly Compensated Employee Threshold $125,000 $130,000 $130,000
Income subject to Social Security Wage Base $132,900 $137,700 $142,800

 

Please share this information with your payroll personnel so they are aware of these limits.