Defined Contribution

IRS Announces Updated Retirement Plan Limits for 2021

New DC Plan Limits for 2021
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The IRS announced the updated retirement plan limits for 2021. Below, we highlight the notable DC plan limits:

  • The annual contribution limit will remain the same at $19,500.
  • The age 50 annual catch-up contribution limit will remain the same at $6,500.
  • The annual compensation limit will increase from $285,000 to $290,000.
  • The Section 415(c) limit will increase from $57,000 to $58,000.
  • The highly compensated employee threshold will remain the same at $130,000.
  • Visit the IRS publication to learn more.
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