Recently, The Internal Revenue Service issued the pension plan limitations for the 2021 tax year. Below is a summary of these limitations as compared with 2020. This is for informational purposes and may be used for year-end planning of your retirement plan contributions.
LIMITS
401(K) Elective Deferral (calendar year)401(k) Catch-up Contribution (age 50 & Older)Annual Defined Contribution LimitAnnual Defined Contribution Limit (over age 50)Plan Participant Compensation LimitSocial Security Wage BaseHighly Compensated Employee CompensationOfficer Compensation for Key Employee Definition2021
$19,500$6,500$58,000$64,500$290,000$142,800$130,000$185,0002020
$19,500$6,500$57,000$63,500$285,000$137,700$130,000$185,000
If you have any questions regarding the above, please give our office a call at 414-545-0085.