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2021 Cost of Living Adjustments for Retirement Plans

The IRS has announced cost of living adjustments (COLA) applicable to qualified retirement plans for 2021.

Following is an updated summary of those adjustments.

Maximum Compensation$285,000$290,000
Maximum Contribution Limit57,00058,000
401(k) Plan Annual Limit19,50019,500
SIMPLE Retirement Accounts13,50013,500
457/403(b) Annual Limit19,50019,500
Defined Benefit Annual Limit230,000230,000
Covered Compensation Limits – Social Security137,700142,800
Catch-up Contributions 401(k)/403(b) 6,5006,500
Catch-up Contributions SIMPLE 401(k) 3,0003,000
Highly Compensated Employee130,000130,000
IRA Contribution Limit6,0006,000

For more information, please contact Therese Cheevers at or 844.4WINDES (844.494.6337).
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