The limitation used in the definition of "highly compensated employee" under § 414(q)(1)(B) remains unchanged at $130,000. The dollar amount under § 409(o)(1)(C)(ii) for determining the maximum account balance in an employee stock ownership plan subject to a 5-year distribution period is increased from $1,150,000 to $1,165,000, while the dollar amount used to determine the lengthening of the 5-year distribution period remains unchanged at $230,000. ![]() The dollar limitation under § 416(i)(1)(A)(i) concerning the definition of "key employee" in a top-heavy plan remains unchanged at $185,000. The limitation under § 402(g)(1) on the exclusion for elective deferrals described in § 402(g)(3) remains unchanged at $19,500. After considering the applicable rounding rules, the amounts for 2021 are as follows: ![]() The Code provides that various other dollar amounts are to be adjusted at the same time and in the same manner as the dollar limitation of § 415(b)(1)(A). The limitation for defined contribution plans under § 415(c)(1)(A) is increased for 2021 from $57,000 to $58,000. Effective January 1, 2021, the limitation on the annual benefit under a defined benefit plan under § 415(b)(1)(A) remains unchanged at $230,000.įor a participant who separated from service before January 1, 2021, the participant’s limitation under a defined benefit plan under § 415(b)(1)(B) is computed by multiplying the participant’s compensation limitation, as adjusted through 2020, by 1.0122.
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