The IRS has released the adjusted contribution and benefit limits and the Social Security Administration has released the Social Security wage base for 2021. Many of the limits are unchanged from 2020, while others increased slightly. The limits for 2021 and 2020 are shown in the table below.
| Code Sec. | 2021 | 2020 | |
|---|---|---|---|
| Max benefit for DB plan | 415(b)(1)(A) | $230,000 | $230,000 |
| Max contribution for DC plan | 415(c)(1)(A) | $58,000 | $57,000 |
| Elective deferrals limit | 402(g)(1) | $19,500 | $19,500 |
| Catch-up contributions limit | 414(v) | $6,500 | $6,500 |
| Highly compensated employee limit | 414(q)(1)(B)(i) | $130,000 | $130,000 |
| Annual compensation limit | 401(a)(17) | $290,000 | $285,000 |
| IRA contributions | 219(b)(5)(A) | $6,000 | $6,000 |
| IRA catch-up limit | 219(b)(5)(B) | $1,000 | $1,000 |
| Deferral limits for DC plans of state and local governments | 457(b)(2) & 457(c)(1) | $19,500 | $19,500 |
| Definition of key employee in top-heavy plan | 416(i)(1)(A)(i) | $185,000 | $185,000 |
| HSA contribution limit (single) | $3,600 | $3,550 | |
| HSA contribution limit (family) | $7,200 | $7,100 | |
| HSA catch-up limit | $1,000 | $1,000 | |
| FSA contribution limit | $2,750 | $2,750 |
