Maximum Benefits and Contributions Limits for 1996 to 2021 (Posted on October 26, 2020 by )


Carol V. Calhoun, Counsel
Venable LLP
600 Massachusetts Avenue, NW
Washington, DC 20001
Phone: (202) 344-4715
Fax: (202) 344-8300
Mobile: (202) 441-5592
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Carol V. Calhoun

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Type of Limitation 2021 2020 2019 2018 2017 2016 2015 2014 2013 2012 2011 2010 2009 2008 2007 2006 2005 2004 2003 2002 2001 2000 1999 1998 1997 1996
Elective Deferrals (401(k) and 403(b); not including adjustments and catch-ups) $19,500 $19,500 $19,000 $18,500 $18,000 $18,000 $18,000 $17,500 $17,500 $17,000 $16,500 $16,500 $16,500 $15,500 $15,500 $15,000 $14,000 $13,000 $12,000 $11,000 $10,500 $10,500 $10,000 $10,000 $9,500 $9,500
457(b)(2) and 457(c)(1) Limits (not including catch-ups) $19,500 $19,500 $19,000 $18,500 $18,000 $18,000 $18,000 $17,500 $17,500 $17,000 $16,500 $16,500 $16,500 $15,500 $15,500 $15,000 $14,000 $13,000 $12,000 $11,000 $8,500 $8,000 $8,000 $8,000 $7,500 N/A
Section 414(v) Catch-Up Deferrals to 401(k), 403(b), 457(b), or SARSEP Plans $6,500 $6,500 $6,000 $6,000 $6,000 $6,000 $6,000 $5,500 $5,500 $5,500 $5,500 $5,500 $5,500 $5,000 $5,000 $5,000 $4,000 $3,000 $2,000 $1,000 N/A N/A N/A N/A N/A N/A
Defined Benefit Plans $230,000 $230,000 $225,000 $220,000 $215,000 $210,000 $210,000 $210,000 $205,000 $200,000 $195,000 $195,000 $195,000 $185,000 $180,000 $175,000 $170,000 $165,000 $160,000 $160,000 $140,000 $135,000 $130,000 $130,000 $125,000 $120,000
Defined Contribution Plans (annual additions limit) $58,000 $57,000 $56,000 $55,000 $54,000 $53,000 $53,000 $52,000 $51,000 $50,000 $49,000 $49,000 $49,000 $46,000 $45,000 $44,000 $42,000 $41,000 $40,000 $40,000 $35,000 $30,000 $30,000 $30,000 $30,000 $30,000
Annual Compensation Limit $290,000 $285,000 $280,000 $275,000 $270,000 $265,000 $265,000 $260,000 $255,000 $250,000 $245,000 $245,000 $245,000 $230,000 $225,000 $220,000 $210,000 $205,000 $200,000 $200,000 $170,000 $170,000 $160,000 $160,000 $160,000 $150,000
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 $415,000 $405,000 $400,000 $395,000 $395,000 $385,000 $380,000 $375,000 $360,000 $360,000 $360,000 $345,000 $335,000 $325,000 $315,000 $305,000 $300,000 $295,000 $285,000 $275,000 $270,000 $265,000 N/A N/A
Highly Compensated Employee (“HCEs”) $130,000 $130,000 $125,000 $120,000 $120,000 $120,000 $120,000 $115,000 $115,000 $115,000 $110,000 $110,000 $110,000 $105,000 $100,000 $100,000 $95,000 $90,000 $90,000 $90,000 $85,000 $85,000 $80,000 $80,000 $80,000 N/A
Key Employee/Officer $185,000 $185,000 $180,000 $175,000 $175,000 $170,000 $170,000 $170,000 $165,000 $165,000 $155,000 $155,000 $160,000 $150,000 $145,000 $140,000 $135,000 $130,000 $130,000 $130,000 N/A N/A N/A N/A N/A N/A
Individual Retirement Accounts (“IRAs”), for individuals 49 and below $6,000 $6,000 $6,000 $5,500 $5,500 $5,500 $5,500 $5,500 $5,500 $5,000 $5,000 $5,000 $5,000 $5,000 $4,000 $4,000 $4,000 $3,000 $3,000 $3,000 $2,000 $2,000 $2,000 $2,000 $2,000 $2,000
Individual Retirement Accounts (“IRAs”), for individuals 50 and above $7,000 $7,000 $7,000 $6,500 $6,500 $6,500 $6,500 $6,500 $6,500 $6,000 $6,000 $6,000 $6,000 $6,000 $5,000 $5,000 $4,500 $3,500 $3,500 $3,500 $2,000 $2,000 $2,000 $2,000 $2,000 $2,000
SIMPLE Retirement Accounts $13,500 $13,500 $13,000 $12,500 $12,500 $12,500 $12,500 $12,000 $12,000 $11,500 $11,500 $11,500 $11,500 $10,500 $10,500 $10,000 $10,000 $9,000 $8,000 $7,000 $6,500 $6,000 $6,000 $6,000 $6,000 N/A
SEP Coverage $650 $600 $600 $600 $600 $600 $600 $550 $550 $550 $550 $550 $550 $500 $500 $450 $450 $450 $450 $450 $450 $450 $400 $400 $400 $400
SEP Compensation $290,000 $285,000 $280,000 $275,000 $270,000 $265,000 $265,000 $260,000 $255,000 $250,000 $245,000 $245,000 $245,000 $230,000 $225,000 $220,000 $210,000 $205,000 $200,000 $200,000 $170,000 $170,000 $160,000 $160,000 $160,000 $150,000
Tax Credit ESOP Maximum Balance $1,165,000 $1,150,000 $1,130,000 $1,105,000 $1,080,000 $1,070,000 $1,070,000 $1,050,000 $1,035,000 $1,015,000 $985,000 $985,000 $985,000 $935,000 $915,000 $850,000 $850,000 $830,000 $810,000 $800,000 $780,000 $755,000 $735,000 $725,000 $710,000 $690,000
Amount for Lengthening of 5-Year ESOP Period $230,000 $230,000 $225,000 $220,000 $215,000 $210,000 $210,000 $210,000 $205,000 $200,000 $195,000 $195,000 $195,000 $185,000 $180,000 $175,000 $170,000 $165,000 $160,000 $160,000 $155,000 $150,000 $145,000 $145,000 $140,000 $135,000
Maximum Amount for Qualified Longevity Annuity Contract Purchases $135,000 $135,000 $130,000 $130,000 $125,000 $125,000 $125,000 $125,000 N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A
Excess Distribution Threshold N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A $160,000 $155,000
Qualified Police and Firefighters’ DB Benefit Limit N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A $70,000 $66,000
Income Subject to Social Security Tax $142,800 $137,700 $132,900 $128,400 $127,200 $118,500 $118,500 $117,000 $113,700 $110,100 $106,800 $106,800 $106,800 $102,000 $97,500 $94,200 $90,000 $87,900 $87,000 $84,900 $80,400 $76,200 $72,600 $68,400 $65,400 $62,700
FICA Tax for employers 7.65% 7.65% 7.65% 7.65% 7.65% 7.65% 7.65% 7.65% 7.65% 7.65% 7.65% 7.65% 7.65% 7.65% 7.65% 7.65% 7.65% 7.65% 7.65% 7.65% 7.65% 7.65% 7.65% 7.65% 7.65% 7.65%
FICA Tax for employees 7.65% 7.65% 7.65% 7.65% 7.65% 7.65% 7.65% 7.65% 7.65% 5.65% 5.65% 7.65% 7.65% 7.65% 7.65% 7.65% 7.65% 7.65% 7.65% 7.65% 7.65% 7.65% 7.65% 7.65% 7.65% 7.65%
Social Security Tax for employers 6.2% 6.2% 6.2% 6.2% 6.2% 6.2% 6.2% 6.2% 6.2% 6.2% 6.2% 6.2% 6.2% 6.2% 6.2% 6.2% 6.2% 6.2% 6.2% 6.2% 6.2% 6.2% 6.2% 6.2% 6.2% 6.2%
Social Security Tax for employees 6.2% 6.2% 6.2% 6.2% 6.2% 6.2% 6.2% 6.2% 6.2% 4.2% 4.2% 6.2% 6.2% 6.2% 6.2% 6.2% 6.2% 6.2% 6.2% 6.2% 6.2% 6.2% 6.2% 6.2% 6.2% 6.2%
Medicare Tax for employees and employers 1.45% 1.45% 1.45% 1.45% 1.45% 1.45% 1.45% 1.45% 1.45% 1.45% 1.45% 1.45% 1.45% 1.45% 1.45% 1.45% 1.45% 1.45% 1.45% 1.45% 1.45% 1.45% 1.45% 1.45% 1.45% 1.45%
SECA Tax for self-employed workers 15.3% 15.3% 15.3% 15.3% 15.3% 15.3% 15.3% 15.3% 15.3% 13.3% 13.3% 15.3% 15.3% 15.3% 15.3% 15.3% 15.3% 15.3% 15.3% 15.3% 15.3% 15.3% 15.3% 15.3% 15.3% 15.3%
Social Security Tax for self-employed workers 12.4% 12.4% 12.4% 12.4% 12.4% 12.4% 12.4% 12.4% 12.4% 10.4% 10.4% 12.4% 12.4% 12.4% 12.4% 12.4% 12.4% 12.4% 12.4% 12.4% 12.4% 12.4% 12.4% 12.4% 12.4% 12.4%
Medicare Tax for self-employed workers 2.9% 2.9% 2.9% 2.9% 2.9% 2.9% 2.9% 2.9% 2.9% 2.9% 2.9% 2.9% 2.9% 2.9% 2.9% 2.9% 2.9% 2.9% 2.9% 2.9% 2.9% 2.9% 2.9% 2.9% 2.9% 2.9%
Footnotes:
19. This number is only the catch-up available under Code section 414(v). Code sections 457(b)(3) and 402(g) provide separate catch-up rules, which must also be considered in appropriate cases.
20. Beginning in 2013, there is also a 0.9 percent Additional Medicare Tax that applies to an individual’s wages, Railroad Retirement Tax Act compensation, and self-employment income that exceeds a threshold amount based on the individual’s filing status. The threshold amounts are $250,000 for married taxpayers who file jointly, $125,000 for married taxpayers who file separately, and $200,000 for all other taxpayers. An employer is responsible for withholding the Additional Medicare Tax from wages or compensation it pays to an employee in excess of $200,000 in a calendar year.
This number is only the catch-up available under Code section 414(v). Code sections 457(b)(3) and 402(g) provide separate catch-up rules, which must also be considered in appropriate cases.
Beginning in 2013, there is also a 0.9 percent Additional Medicare Tax that applies to an individual’s wages, Railroad Retirement Tax Act compensation, and self-employment income that exceeds a threshold amount based on the individual’s filing status. The threshold amounts are $250,000 for married taxpayers who file jointly, $125,000 for married taxpayers who file separately, and $200,000 for all other taxpayers. An employer is responsible for withholding the Additional Medicare Tax from wages or compensation it pays to an employee in excess of $200,000 in a calendar year.