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 tcheevers@windes.com or 844.4WINDES (844.494.6337).