The Internal Revenue Service creates annual limitations on contributions made to qualified retirement plans like Brethren Pension Plan. Here are the main types of contributions, and the limits for 2020 and 2021 —
Elective-deferral contributions — Elective deferrals include both pre-tax and designated Roth contributions an employee makes to an employer-sponsored retirement plan such as a 401(k) or 403(b). (Code § 402(g))
| 2020 Limit: $19,500 | 2021 Limit: $19,500 |
Catch-up contributions — If you are 50 years old or older by the end of the calendar year, you may contribute additional funds to your Pension account beyond the elective-deferral contribution limit. (Code § 414(v))
| 2020 Limit: $6,500 | 2021 Limit: $6,500 |
Defined contribution plan contributions — The total annual contribution, including pre-tax, tax-paid, and Roth contributions, from both an employer and an employee. The limit is the lesser of the dollar figure below or 100 percent of your pay. (Code § 415(c))
| 2020 Limit: $57,000 | 2021 Limit: $58,000 |
Annual compensation limit — The maximum dollar amount that can be taken into consideration when calculating retirement benefit contributions. (Code § 401(a)(17))
| 2020 Limit: $285,000 | 2021 Limit: $290,000 |