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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$23.000$22,500$20,500
Catch-Up Contributions$7,500$7,500$6,500
Annual Contribution Limit$69,000$66,000$61,000
Annual Contribution Limit including Catch-Up Contributions$76,500$73,500$67,500
Annual Benefit Limit$275,000$265,000$245,000
Compensation Limits
Maximum Plan Compensation$345,000$330,000$305,000
Income Subject to Social Security$168,600$160,200$147,000
Key EE Compensation Threshold$220,000$215,000$200,000
Highly Compensated EE Threshold$155,000$150,000$135,000
IRA Limits
SIMPLE Plan Elective Deferrals$16,000$15,500$14,000
SIMPLE Catch-Up Contributions$3,500$3,500$3,000
Individual Retirement Account (IRA)$7,000$6,500$6,000
IRA Catch-Up Contribution$1,000$1,000$1,000
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