Innovative Solutions for Executive Benefits
Karr Barth Administrators, Inc.
IRS Rates and Limits
IRS Limits
| Qualified Retirement Plans Limits | 2020 | 2021 |
|---|---|---|
| Maximum elective deferral to retirement plans (e.g. 401(k), 403(b), & 457) | $19,500 | $19,500 |
| 401(k) Age 50+ catch-up contribution | 6,500 | 6,500 |
| Maximum IRA contribution limit | 6,000 | 6,000 |
| IRA Age 50+ catch-up contribution | 1,000 | 1,000 |
| Maximum elective deferral to SIMPLE plan | 13,500 | 13,500 |
| SEP minimum compensation amount | 600 | 650 |
| Annual includable compensation limit | 285,000 | 290,000 |
| Defined contribution plan annual addition limit (415 limit) | 57,000 | 58,000 |
| Highly compensated employee compensation limit | 130,000 | 130,000 |
| Annual retirement benefit limit under defined benefit plan (415 limit, not to exceed 100% of compensation) | 230,000 | 230,000 |
| Social Security | 2020 | 2021 |
|---|---|---|
| Maximum Compensation Subject to FICA Taxes: | ||
| OASDI (Social Security) maximum | $137,700 | $142,800 |
| HI (Medicare) maximum | No limit | No limit |
- OASDI Tax Rate: 12.4% Self-Employed, 6.2% Employees
- HI Tax Rate: 2.9% Self-Employed, 1.45% Employees
Detailed IRS Tax Tables - 2019/2020