IRS Announces 2021 Retirement Plan Contribution Limits
October 26, 2020
On October 26, 2020, the IRS announced the various adjustments applicable to retirement plan contribution limits for 2021.
- 402(g) Annual elective deferral limits for 457, 403(b), and 401(k) plans remains at $19,500
- Age 50 Catch Up limits for 457, 403(b) and 401(k) plans remain at $6,500
- 415(c) Annual Additions limits for 401(a) plans will increase from $57,000 to $58,000
- For 2021, Traditional and Roth IRA contribution limits remain unchanged from 2020 at $6,000
More details on the retirement plan limits are available from the IRS.
The tables below provide the 2020 and 2021 contribution limitations for 457, 401, 403(b) and IRA plans. ICMA-RC will provide additional information for plan sponsors and participants at www.icmarc.org and through Employer Bulletins in the near future.
457 Plan Limits
| Limitation | 2021 | 2020 |
|---|---|---|
| Annual Deferral Limit for 457 Plans | $19,500 | $19,500 |
| "Pre-Retirement" Catch-Up Limit | $19,500 ($39,000 total) |
$19,500 ($39,000 total) |
| "Age 50" Catch-Up Limit | $6,500 ($26,000 total) |
$6,500 ($26,000 total) |
401 Plan Limits
| Limitation |
2021 |
2020 |
|---|---|---|
| 401 Defined Contribution Plans - Annual Additions (§415(c)(1)(A)) | $58,000 | $57,000 |
| 401 Defined Benefit Plans - Maximum Annual Benefit* (§415(b)(1)(A)) | $230,000 | $225,000 |
| 401 Annual Compensation Limit** (non-grandfather/grandfather) (§401(a)(17))) | $290,000/$430,000 | $285,000/$425,000 |
|
Annual Deferral Limit for (§401(k) Plans (§402(g)) |
$19,500 | $19,500 |
| 401(k) "Age 50" Catch-Up (§414(v)) | $6,500 ($26,000 total) |
$6,500 ($26,000 total) |
403(b) Plan Limits
| Limitation | 2021 | 2020 |
|---|---|---|
| Annual Deferral Limit for 403(b) Plans | $19,500 | $19,000 |
| "Age 50" Catch-Up Limit | $6,500 ($26,000 total) |
$6,500 ($26,000 total) |
Traditional IRA & Roth IRA Contribution Limits
| Limitation | 2021 | 2020 |
|---|---|---|
| Annual Contribution Limit | $6,000 | $6,000 |
| "Age 50" Catch-Up Limit | $1,000 | $1,000 |
*Special limitations apply to defined benefit plans. Please contact your defined benefit plan administrator for additional information.
**OBRA 1993 provided a governmental exception for the maximum compensation limit that grandfathers certain employees under the 1993 compensation limit of $235,840. Employees eligible to participate in a governmental plan, utilizing the ICMA-RC plan document, prior to January 1, 1994, are subject to the maximum compensation limit of $235,840 as indexed and shown above as the "grandfather" limit. Employees eligible to participate in a governmental plan, utilizing the ICMA-RC plan document, after January 1, 1994, are subject to the maximum compensation limit of $150,000 as indexed and shown above as the "non-grandfather" limit.