The IRS has released the retirement contribution limits for the 2021 tax year. The new limits are adjusted based on increases in the cost of living.
|
|
2021 |
2020 |
|
401(k), 403(b), 457(b) deferral limits |
$19,500 |
$19,500 |
|
401(k), 403(b) catch-up deferral limits for 50 and older |
$6,500 |
$6,500 |
|
Annual limitation on compensation |
$290,000 |
$285,000 |
|
Defined plan limit |
$58,000 |
$57,000 |
|
Defined benefit limitation |
$230,000 |
$230,000 |
|
Highly compensated employee compensation threshold |
$130,000 |
$130,000 |
|
Key employee compensation (officer) threshold |
$185,000 |
$185,000 |
|
SIMPLE Deduction |
$13,500 |
$13,500 |
|
SIMPLE catch-up contribution |
$3,000 |
$3,000 |
|
IRA contribution limit |
$6,000 |
$6,000 |
|
IRA catch-up contribution limit |
$1,000 |
$1,000 |
|
Social Security Taxable Income Limit |
$142,800 |
$137,700 |
If you have questions about the new contribution limits, or would like to understand how this may impact your retirement and tax strategies, contact us.