---
title: 2021 Contribution Limits
description: The IRS has announced cost of living adjustments affecting dollar limitations for pension plans and other retirement-related items for tax year 2020.
---

[Employee Benefits Blog | Bjork Group ](https://www.bjorkgroup.com/blog)

# [2021 Contribution Limits](https://www.bjorkgroup.com/blog/2021-contribution-limits)

 Written by [Bjork Group](https://www.bjorkgroup.com/blog/author/bjork-group) | Nov 3, 2020 8:39:31 PM

The IRS has announced cost of living adjustments affecting dollar limitations for pension plans and other retirement-related items for tax year 2020. For company retirement plans, the most recognized highlights include:

The following limits are going up for 2021:

- The annual additions limit for defined contribution plans increases to $58,000
- The annual compensation limit increases to $290,000
- The Social Security Wage Base increases to $142,800

 

The following limits will remain the same for 2021:

- The salary deferral limit for 401(k), 403(b), and 457 plans remains at $19,500
- The catch- up contribution limits for 401(k) plans remains at $6,500
- The annual additions limit for defined benefit plans remains at $230,000
- The compensation limit for determining who is a highly compensated employee remains at $130,000

Review the full list of contribution limit changes below and share with your plan participants!

<https://www.bjorkgroup.com/hubfs/Bjork%20Group_2021%20Contribution%20Limits.pdf>

 

[View full post](https://www.bjorkgroup.com/blog/2021-contribution-limits)

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