IRS Announces Retirement Plan Limits 2021

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.

Contribution/Benefit Limits 2021 2020
Elective Deferrals [401(k), 403(b) & 457 plans] $19,500 $19,500
Catch-Up Contribution $6,500 $6,500
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.

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