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Qualified Plan Limits

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  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-Ups 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(l), 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(o)(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 on 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. CohnReznick Benefits Consultants 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.

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