IRS Code Section 415 Maximum Limits For Benefits
Your SDRS retirement benefit may be limited by Federal law. IRS Code Section 415 imposes a maximum monthly benefit amount.
Your SDRS Personal Benefits Statement will contain an IRS Section 415 statement if it is determined that your projected SDRS retirement benefit may exceed the maximum cap. These benefit caps are based on IRS regulations and are outside the power of SDRS to change. You are urged to consider them in your long-term retirement planning.
| Monthly Benefit Maximums for 2021 | ||
|---|---|---|
| Age | Annual Maximum | Monthly Maximum |
| 55 | $144,361 | $12,030 |
| 56 | $153,949 | $12,829 |
| 57 | $164,280 | $13,690 |
| 58 | $175,435 | $14,620 |
| 59 | $187,494 | $15,624 |
| 60 | $200,545 | $16,712 |
| 61 | $214,681 | $17,890 |
| 62-65 | $230,000 | $19,167 |
IRS Code Section 401(a)(17) Maximum Limits For Compensation
IRS Code Section 401(a)(17) provides for annual compensation limitations for members who participate in defined benefit plans, such as SDRS. The compensation limit applies to all members who joined SDRS on and after July 1, 1996. The compensation limit affects the contributions you make to SDRS and limits the final average compensation (FAC) used in your retirement benefit calculation(s).
You may receive a letter from SDRS along with your SDRS Personal Benefits Statement if it has been determined that your current and/or projected compensation may exceed the maximum amounts. These compensation caps are based on IRS regulations and are outside the power of SDRS to change. You are urged to consider them in your long-term retirement planning.
| Annual Compensation Limits | |
|---|---|
| Year | Amount |
| 2021 | $290,000 |
| 2020 | $285,000 |
| 2019 | $280,000 |
| 2018 | $275,000 |
| 2017 | $270,000 |
| 2016 | $265,000 |
| 2015 | $265,000 |
| 2014 | $260,000 |
| 2013 | $255,000 |
| 2012 | $250,000 |
| 2011 | $245,000 |
| 2010 | $245,000 |
| 2009 | $245,000 |
| 2008 | $230,000 |
| 2007 | $225,000 |
| 2006 | $220,000 |
| 2005 | $210,000 |
| 2004 | $205,000 |
| 2003 | $200,000 |
| 2002 | $200,000 |
| 2001 | $170,000 |
| 2000 | $170,000 |
| 1999 | $160,000 |
| 1998 | $160,000 |
| 1997 | $160,000 |
| 1996 | $150,000 |