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Plan Limits

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Each year the U.S. government adjusts the limits for qualified plans and Social Security to reflect cost-of-living adjustments and changes in the law. Many of these limits are based on the “plan year” as defined in the plan document. The elective deferral and catch-up limits are always based on the calendar year.

plan design and implementation - Plan Limits - Preferred Pension Solutions
Contribution and Benefit Limits
Elective Deferral Limit$20,500$19,500$19,500
Catch-Up Contributions$6,500$6,500$6,500
Annual Contribution Limit$61,000$58,000$57,000
Annual Contribution Limit including Catch-Up Contributions$67,500$64,500$63,500
Annual Benefit Limit$245,000$230,000$230,000
Compensation Limits
Maximum Plan Compensation$305,000$290,000$285,000
Income Subject to Social Security$147,900$142,800 $137,700
Key EE Compensation Threshold$200,000$185,000$185,000
Highly Compensated EE Threshold$135,000$130,000$130,000
IRA Limits
SIMPLE Plan Elective Deferrals$14,000$13,500$13,500
SIMPLE Catch-Up Contributions$3,000$3,000$3,000
Individual Retirement Account (IRA)$6,000$6,000$6,000
IRA Catch-Up Contribution$1,000$1,000$1,000
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