IRS contribution limits

Understanding IRS contribution limits is important, especially when your goal is to contribute the maximum to your account. Even if you can’t do the max, consider increasing your contribution a little each year to potentially move closer to your retirement goals.

2021 deferral limits1

Standard deferral
$19,500
Age 50+ catch-up
$6,500
Special 457(b) catch-up
up to $39,000

2020 deferral limits1

Standard deferral
$19,500
Age 50+ catch-up
$6,500
Special 457(b) catch-up
up to $39,000

The Age 50+ Catch-up provision allows people over age 50 to contribute more to their deferred comp account.

The Special 457(b) Catch-up Provision is part of the Section 457(b) of the Internal Revenue Code, and was amended by the Pension Protection Act of 2006. Participants who have not contributed the maximum limit under IRS law in previous years may contribute an amount less than or equal to the maximum limit (essentially, up to double the maximum) in the three years prior to the individual’s normal retirement age.

How much should I contribute?

If your goal is to contribute the standard maximum deferral amount each year, you would need to contribute:

Pay frequency Contribution
Weekly (52 pays) $375
Bi-weekly (26 pays) $750
Semi-monthly (24 pays) $813
Monthly (12 pays) $1,625
Maximum deferral contribution examples

IRA

2020 and 2021 IRA Traditional/Roth contribution limits2

Standard deferral
$6,000
Age 50+ catch-up
$7,000

How much should I contribute?

If your goal is to contribute the standard maximum deferral amount each year, you would need to contribute:

Pay frequency Contribution Contribution (50+)
Weekly (52 pays) $115 $135
Bi-weekly (26 pays) $231 $269
Semi-monthly (24 pays) $250 $292
Monthly (12 pays) $500 $583
Maximum deferral contribution examples
StepsAndColumns-flat
Stay up-to-date on any changes to the IRS deferral limits; visit the Retirement Plans Community on the IRS website.

Get the help you need

Talk with one of our retirement specialists for more information about planning for your retirement.

[1] IRS Announces 2021 Pension Plan Limitations

[2] Annual limit is the sum of both IRA Traditional and IRA Roth Contributions or your taxable compensation for the year, whichever is lower

NRW-7097AO.1