Annual Plan Limits
Annual Plan Limits
| 2019 | 2020 | 2021 | 2022 | ||
| Compensation | $280,000 | $285,000 | $290,000 | $305,000 | |
| Limits on benefits and contributions: | |||||
| Defined contribution plans | $56,000 | $57,000 | $58,000 | $61,000 | |
| Defined benefit plans | $225,000 | $230,000 | $230,000 | $245,000 | |
| 401(k), 403(b) and 457 plan elective deferrals | $19,000 | $19,500 | $19,500 | $20,500 | |
| SIMPLE plan elective deferrals | $13,000 | $13,500 | $13,500 | $14,000 | |
| IRA | $6,000 | $6,000 | $6,000 | $6,000 | |
| Catch-up contributions: | |||||
| 401(k), 403(b) and 457 plans | $6,000 | $6,500 | $6,500 | $6,500 | |
| SIMPLE plans | $3,000 | $3,000 | $3,000 | $3,000 | |
| IRA | $1,000 | $1,000 | $1,000 | $1,000 | |
| “Highly Compensated” definition | $125,000 | $130,000 | $130,000 | $135,000 | |
| “Key Employee” definition: | |||||
| Officer | $180,000 | $185,000 | $185,000 | $200,000 | |
| 1% owner | $150,000 | $150,000 | $150,000 | $150,000 | |
| Social Security: | |||||
| Taxable wage base | $132,900 | $137,700 | $142,800 | $147,000 | |
| Social Security tax rate* | 6.20% | 6.20% | 6.20% | 6.20% | |
| Medicare tax rate | 1.45% | 1.45% | 1.45% | 1.45% | |
| Combined tax rate | 7.65% | 7.65% | 7.65% | 7.65% | |
* Beginning 2013, a medicare surtax of 0.9% applies to wages exceeding 250,000. There is a secondary surtax of 3.8% that may apply to unearned income for certain taxpayers as well.
Source: IRS.gov