IRC Section 415 requires that plan limits be adjusted annually for cost-of-living increases. These adjustments are calculated and released by the Internal Revenue Service (IRS) each year. Released on October 26, the IRS provided tax inflation adjustments for 2021 in Notice 2020-79.
There is little change in many of the 2021 plan limits but be sure to view a detailed listing below:
| PLAN LIMITS | 2021 | 2020 | 2019 |
| 401(k)/403(b) Deferrals | $19,500 | $19,500 | $19,000 |
| 401(k)/403(b) Catch Up | $6,500 | $6,500 | $6,000 |
| SIMPLE Deferrals | $13,500 | $13,500 | $13,000 |
| SIMPLE Plan Catch Up | $3,000 | $3,000 | $3,000 |
| 457 Deferrals | $19,500 | $19,500 | $19,000 |
| IRA | $6,000 | $6,000 | $6,000 |
| IRA Catch Up | $1,000 | $1,000 | $1,000 |
| Defined Contribution | $58,000* | $57,000 | $56,000 |
| Defined Benefit | $230,000 | $230,000 | $225,000 |
| Includible Compensation | $290,000* | $285,000 | $280,000 |
| Tax Credit ESOP Maximum Balance | $1,165,000* | $1,150,000 | $1,130,000 |
| Social Security Taxable Wage Base | $142,800* | $137,700 | $132,900 |
| SEP Min. Participation Threshold | $650* | $600 | $600 |
| SEP Maximum Participation Threshold | $290,000* | $285,000 | $280,000 |
| Key Employee | $185,000 | $185,000 | $180,000 |
| Highly Compensated Employee | $130,000 | $130,000 | $125,000 |
| Maximum Monthly Social Security | $3,148* | $3,011 | $2,861 |
| HSA Individual Contribution | $3,600* | $3,550 | $3,500 |
| HSA Family Contribution | $7,200* | $7,100 | $7,000 |
| HSA Catch Up Contribution (ages 55+) | $1,000 | $1,000 | $1,000 |
| HDHP Minimum Individual Deductible | $1,400 | $1,400 | $1,350 |
| HDHP Minimum Family Deductible | $2,800 | $2,800 | $2,700 |
| HDHP Out-of-Pocket Maximum - Self | $7,000* | $6,900 | $6,750 |
| HDHP Out-of-Pocket Maximum - Family | $14,000* | $13,800 | $13,500 |
| Monthly Transit/Van Pooling | $270 | $270 | $265 |
| Monthly Qualified Parking | $270 | $270 | $265 |
| FSA Medical Maximum Deferral | $2,750 | $2,750 | $2,700 |
| FSA Dependent Care Max. Deferral | $5,000 | $5,000 | $5,000 |
* Indicates a change from 2020 to 2021.
Download the complete list of 2021 limitations for benefit plans (PDF).
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