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Annual Plan Limits

   2018 2019 2020 2021
Compensation $275,000$280,000$285,000$290,000  
Limits on benefits and contributions:
 Defined contribution plans$55,000$56,000$57,000$58,000
 Defined benefit plans$220,000$225,000$230,000$230,000
 401(k), 403(b) and 457 plan elective deferrals$18,500$19,000$19,500$19,500
 SIMPLE plan elective deferrals$12,500$13,000$13,500$13,500
Catch-up contributions:
 401(k), 403(b) and 457 plans$6,000$6,000$6,500$6,500
 SIMPLE plans$3,000$3,000$3,000$3,000
“Highly Compensated” definition $120,000$125,000$130,000$130,000
“Key Employee” definition:
 1% owner$150,000$150,000$150,000$150,000
Social Security:
 Taxable wage base$128,400$132,900$137,700$142,800
 Social Security tax rate*6.20%6.20%6.20%6.20%
 Medicare tax rate1.45%1.45%1.45%1.45%
 Combined tax rate7.65%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.


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