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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