The IRS has announced the 2021 annual dollar limitations for retirement plans based on the applicable cost-of-living adjustment guidelines. The annual limit for elective deferrals to 401(k) plans and 403(b) plans will remain unchanged at $19,500, and the annual limit for catch-up contributions for individuals age 50 or older also will remain unchanged at $6,500. The Social Security Administration also recently announced that the Social Security wage base will increase from $137,700 for 2020 to $142,800 for 2021.

Listed below are the principal limits applicable for 2021 and 2020. 

Limit	2021	2020
Compensation Limit	$290,000	$285,000
Elective Deferrals (401(k) plans, 403(b) plans, 457(b) plans)	$19,500	$19,500
Catch-up Contributions (plans other than SIMPLE plans)	$6,500	$6,500
Defined Contribution Plan 415 Limit	$58,000	$57,000
Defined Benefit Plan 415 Limit	$230,000	$230,000
Highly Compensated Employee	$130,000	$130,000
Social Security Wage Base	$142,800	$137,700
SIMPLE Plan Limit	$13,500	$13,500
SIMPLE Catch-up Contributions	$3,000	$3,000