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Annual Plan Limits

   2020 2021 2022 2023
Compensation $285,000$290,000$305,000$330,000  
Limits on benefits and contributions:
 Defined contribution plans$57,000$58,000$61,000$66,000
 Defined benefit plans$230,000$230,000$245,000$265,000
 401(k), 403(b) and 457 plan elective deferrals$19,500$19,500$20,500$22,500
 SIMPLE plan elective deferrals$13,500$13,500$14,000$15,500
Catch-up contributions:
 401(k), 403(b) and 457 plans$6,500$6,500$6,500$7,500
 SIMPLE plans$3,000$3,000$3,000$3,500
“Highly Compensated” definition $130,000$130,000$135,000$150,000
“Key Employee” definition:
 1% owner$150,000$150,000$150,000$150,000
Social Security:
 Taxable wage base$137,700$142,800$147,000$160,200
 Social Security tax rate6.20%6.20%6.20%6.20%
 Medicare tax rate*1.45%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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