---
title: The 2021 Retirement Plan Contribution Limits
description: The 2021 401(k) and IRA contribution limits have been released by the IRS. This list includes updates to compensation and benefits limits, as well as testing limits.
---

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# [The 2021 Retirement Plan Contribution Limits](https://www.dwc401k.com/blog/2021-401k-retirement-plan-contribution-limits)

 Written by [DWC](https://www.dwc401k.com/blog/author/dwc) | 10/26/20

Extra! Extra! The IRS has released the 2021 contribution limits. Since not everyone was awaiting them quite as eagerly as we were, here is a quick summary.

Here's a rundown of the 2021 limits:

## **Compensation and Benefit Limits **

- Annual compensation limit 
    - **Increases **from $285,000 to **$290,000**
- Salary deferral limit for 401(k) and 403(b) plans 
    - Remains **unchanged** at **$19,500**
- Salary deferral limit for SIMPLE IRA 
    - Remains **unchanged** at **$13,500**
- Salary deferral limit for 457 plans 
    - Remains **unchanged** at **$19,500**

- Catch-up contribution limit for 401(k) plans 
    - Remains **unchanged** at **$6,500**

- Catch-up contribution limit for SIMPLE IRAs 
    - Remains **unchanged **at **$3,000** 
- Annual additions limit for defined contribution plans 
    - **Increases **from $57,000 to **$58,000**
- Annual additions limit for defined benefit plans 
    - Remains **unchanged **at **$230,000**
- Social Security Wage Base 
    - **Increases **from $137,700 to **$142,800**

## **Testing Limits**

- Highly compensated employee  
    - Remains **unchanged**** **at **$130,000**
- Key employee based on officer status  
    - Remains **unchanged**** **at **$185,000**

- Key employee based on 1% owner compensation 
    - Remains **unchanged**** **at **$150,000**

 You can find a chart of these limits from 2012 to 2021 **[here ](https://www.dwc401k.com/historical-contribution-testing-limits-chart)**in the DWC Knowledge Center.

[View full post](https://www.dwc401k.com/blog/2021-401k-retirement-plan-contribution-limits)

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