Confused about IRS pension limits? Have you ever wondered how much you can contribute to your retirement plan and if there are any limitations?
The tax law place IRS pension limits on the dollar amount of contributions to retirement plans and IRAs and the amount of benefits under a pension plan. IRC Section 415 requires the limits to be adjusted annually for cost-of-living increases.
- Limits by plan type (IRA, 401(k), SEP, SIMPLE IRA, 403(b), 457(b), defined benefit)
- 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.
| IRAs | 2021 | 2020 | 2019 |
| IRA Contribution Limit | $6,000 | $6,000 | $6,000 |
| IRA Catch-Up Contributions | 1,000 | 1,000 | 1,000 |
| Traditional IRA AGI Deduction Phase-out Starting at | 2021 | 2020 | 2019 |
| Joint Return | 105,000 | 104,000 | 103,000 |
| Single or Head of Household | 66,000 | 65,000 | 64,000 |
| SEP | 2021 | 2020 | 2019 |
| SEP Minimum Compensation | 650 | 600 | 600 |
| SEP Maximum Contribution | 58,000 | 57,000 | 56,000 |
| SEP Maximum Compensation | 290,000 | 285,000 | 280,000 |
| SIMPLE Plans | 2021 | 2020 | 2019 |
| SIMPLE Maximum Contributions | 13,500 | 13,500 | 13,000 |
| Catch-up Contributions | 3,000 | 3,000 | 3,000 |
| 401(k), 403(b), Profit-Sharing Plans, etc. | 2021 | 2020 | 2019 |
| Annual Compensation | 290,000 | 285,000 | 280,000 |
| Elective Deferrals | 19,500 | 19,500 | 19,000 |
| Catch-up Contributions | 6,500 | 6,500 | 6,000 |
| Defined Contribution Limits | 58,000 | 57,000 | 56,000 |
| ESOP Limits | 1,165,000 230,000 | 1,150,000 230,000 | 1,130,000 225,000 |
| Other | 2021 | 2020 | 2019 |
| HCE Threshold | 130,000 | 130,000 | 125,000 |
| Defined Benefit Limits | 230,000 | 230,000 | 225,000 |
| Key Employee | 185,000 | 185,000 | 180,000 |
| 457 Elective Deferrals | 19,500 | 19,500 | 19,000 |
| Control Employee (board member or officer) | 115,000 | 115,000 | 110,000 |
| Control Employee (compensation-based) | 235,000 | 230,000 | 225,000 |
| Taxable Wage Base | 142,800 | 137,700 | 132,900 |
Topics for Retirement Plans
- Individual Retirement Arrangements (IRAs)
- Types of Retirement Plans
- Retirement Topics — Required Minimum Distributions (RMDs)
- Retirement Plans Frequently Asked Questions (FAQs)
- Retirement Plan Forms and Publications
- Correcting Plan Errors
- Retirement Topics
- Tax Exempt & Government Entities Division At-a-Glance
- Retirement Plans
We know this is a lot of information. Please feel free to contact us and we can help break this down and help you find what plan works for you and your organization.
