The Internal Revenue Service (IRS) announced cost of living adjustments (COLAs) affecting dollar limitations for retirement plans and other retirement-related items for Tax Year 2021.
Unfortunately, many of the retirement plan limitations will not change for the 2021 Tax Year. This includes the Elective Deferral and Catch Up Contribution limits which remain unchanged for the upcoming Tax Year.
|Elective Deferrals [401(k), 403(b) & 457 plans]||$19,500||$19,500|
|Simple Employee Deferral||$13,500||$13,500|
|Simple Catch-Up Contribution||$3,000||$3,000|
|Annual Contribution Limit||$58,000||$57,000|
|Annual Compensation Limit||$290,000||$285,000|
|Highly Compensated Threshold||$130,000||$130,000|
|Income Subject to Social Security||$142,800||$137,700|
|Key Employee Compensation||$185,000||$185,000|
|DB Plan Annual Benefit Limit||$230,000||$230,000|
As published by the Internal Revenue Service.
For full details on the pension plan limitations for 2021 click here.
For more information contact our team.