Broker Check

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 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.

Source: IRS.gov

Have a Question?

Thank you!
Oops!