Workplace retirement plan contribution limits

SEP IRA plan limits

SEP IRA contributions can be made at any time during the year up to the business's tax-filing deadline, including extensions.

Employers can contribute up to the following limits:

SIMPLE IRA plan limits

• For employees: The deadline for employee contributions is Dec. 31.
• For employers: Employer plan contributions to a SIMPLE IRA must be made by the business's tax-filing deadline, including extensions. Employee contributions must be deposited as soon as administratively possible and no later than 30 days following the month of deferral.

Employee contribution limits:

Employer contribution limits:

^{2 Plans with 26-100 eligible employees may elect to make a 4% match or a 3% uniform contribution to qualify for the higher limits available to plans with 25 or fewer employees.}

401(k) plan limits

• For employees: The deadline for employee contributions is Dec. 31.
• For employers: Employer plan contributions to a 401(k) or Owner-only 401(k) must be made by the business's tax-filing deadline, including extensions. Employee contributions must be deposited as soon as administratively possible and no later than 15 days following the month of deferral.

Employee contribution limits:

403(b) plan limits

• For employees: The deadline for employee contributions to a 403(b) is Dec. 31.
• For employers: Employer plan contributions must be made no later than the 15th day of the 10th month following the close of the plan year. Employee contributions must be deposited as soon as administratively possible and generally no later than 15 days following the month of deferral.

Employee contribution limits:

Governmental 457(b) plan limits

• For employees: The deadline for employee contributions to a governmental 457(b) is Dec. 31.
• For employers: Refer to the governing plan documents for contribution deposit deadlines.

Total employee and employer contributions are limited to the lesser of 100% of compensation or the applicable limit below.

Total contribution limits:

^{6 Employees in their last three years of service prior to normal retirement age (as defined by your plan) can contribute up to two times the annual contribution limit. Since a special calculation is required to determine how much you’re eligible to contribute with this type of catch-up, you may want to consult a tax professional.}

Note: Participants of a governmental 457(b) plan can also contribute up to the employee contribution limits for another salary deferral plan (e.g., 403(b)) if available to them.

Defined benefit employer plans

The amount the employer must contribute for a given year is calculated based on the amount needed to pay benefits under the plan. It will vary based on several factors, such as the plan's current assets, assumed rate of return, current and expected retirement ages of participants, and expected benefit amounts.

Since the contribution amount is calculated (and it must be calculated by a qualified actuary), there isn't a dollar limit on the amount that can be contributed. However, there is a limit on the maximum annual benefit a participant can receive in retirement, which can affect the contribution amount.

The maximum annual benefit you can receive is the lesser of 100% of your average compensation for the three highest consecutive years and the applicable limit below: