The IRS has announced cost of living adjustments (COLA) applicable to qualified retirement plans for 2021.
Following is an updated summary of those adjustments.
| | | | | | | | |
| | 2020 | | | 2021 | | | |
| Maximum Compensation | $ | 285,000 | | $ | 290,000 | | | |
| Maximum Contribution Limit | | 57,000 | | | 58,000 | | | |
| 401(k) Plan Annual Limit | | 19,500 | | | 19,500 | | | |
| SIMPLE Retirement Accounts | | 13,500 | | | 13,500 | | | |
| 457/403(b) Annual Limit | | 19,500 | | | 19,500 | | | |
| Defined Benefit Annual Limit | | 230,000 | | | 230,000 | | | |
| Covered Compensation Limits – Social Security | | 137,700 | | | 142,800 | | | |
| Catch-up Contributions 401(k)/403(b) | | 6,500 | | | 6,500 | | | |
| Catch-up Contributions SIMPLE 401(k) | | 3,000 | | | 3,000 | | | |
| Highly Compensated Employee | | 130,000 | | | 130,000 | | | |
| IRA Contribution Limit | | 6,000 | | | 6,000 | | | |
For more information, please contact
Therese Cheevers at
[email protected] or
844.4WINDES (844.494.6337).
