News and Information

IRS 2021 guidelines for pension plans and 401(k) plans

Internal Revenue Service (IRS) 2021 guidelines for pension plans and other retirement-related employee plans including 401(k) accounts are as follows:

• Employee contribution limit to 401(k) and 403(b) plans: $19,500 (remains the same as 2020)
• Additional “catch-up” contribution limit for participants ages 50 and over: $6,500 in 2021 and 2020, and $6,000 in 2019-2015, to traditional and safe harbor 401(k) plans
• Combined employer and employee contribution limit for defined contribution plans: may not exceed the lesser of 100% of employee’s compensation or $58,000 (a $1,000 increase from 2020), not including catch-up contributions

For more information on these and other 2021 guidelines, see the IRS guidelines.