---
title: IRS Announces 2021 Contribution/Benefit Limits
description: The IRS recently announced 2021 dollar limits on benefits and contributions for qualified retirement plans.
image: https://blog.multnomahgroup.com/hubfs/IRS%20social.png
---

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# IRS Announces 2021 Contribution/Benefit Limits

October 27, 2020

The IRS recently announced 2021 dollar limits on benefits and contributions for qualified retirement plans. Many of the limits remain unchanged for 2021.

Listed below are the most common limits.

## Defined Benefit Plans

- The limitation on the annual benefit is unchanged at $230,000

## Defined Contribution Plans

- The total contribution limit for employer and employee contributions has increased from $57,000 to $58,000.
- The annual compensation limit increases to $290,000 from $285,000
- The 402(g) limit on elective deferrals remains at $19,500
- The age 50 catch-up is also unchanged and remains at $6,500
- The limit for defining ‘highly compensated employee’ for top heavy determination remains at $130,000

## IRAs

- The annual contribution limit remains at $6,000
- The age 50 catch remains at $1,000
- SIMPLE IRA contribution limits remain at $13,500
- The income limits allowing for an IRA deduction were increased for several different types of tax filers (i.e., single, married filing jointly, etc.)
- The phase out for eligibility to contribute to a Roth IRA were increased as well

For additional information, download our 2021 Maximum Benefits and Contribution Limits reference material.

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