2021 IRS Cost of Living Adjustments Affecting Retirement Plan Contributions
Greenspring Advisors Corporate Retirement Legislation Insights
Legislation
November 12th 2020

2021 IRS Cost of Living Adjustments Affecting Retirement Plan Contributions

Late last month, the IRS announced the cost-of-living adjustments affecting dollar limitations for defined contribution and defined benefit retirement plans for tax year 2021.

The 2021 limits are provided here: 2021_IRS_Indexed_Plan_Limits.

Item Interested in learning more? Please visit www.greenspringadvisors.com IRS Indexed Limits for 2021 Greenspring Advisors is an SEC-registered investment advisor and the 2018 PLANSPONSOR Retirement Plan Adviser of The Year and a PLANADVISER Top 100 Retirement Plan Adviser. The firm currently consults to more than 120 corporate retirement plans across the United States and advises on plan assets of greater than $3.9 billion (as of 9/30/2020). Greenspring Advisors is a Registered Investment Advisor. Information contained herein has been obtained from sources considered reliable, but its accuracy and completeness are not guaranteed. This material has been prepared for information purposes only and is not a solicitation or an offer to buy any security or instrument or to participate in any trading strategy. Past performance is no guarantee of future results. © 2020 Greenspring Advisors. All Rights Reserved. 401(k) and 403(b) Employee Deferral Limit IRC Reference 2021 Limit 2020 Limit 402(g)(1) $19,500 $19,500 457 Employee Deferral Limit 457(e)(15) $19,500 $19,500 Catch-Up Contribution 414(v)(2)(B)(i) $6,500 $6,500 Defined Contribution Dollar Limit 415(c)(1)(A) $58,000 $57,000 Defined Benefit Dollar Limit 415(b)(1)(A) $230,000 $230,000 Compensation Limit 401(a)(17); 404(l) $290,000 $285,000 Highliy Compensated Employee Income Limit 414(q)(1)(B) $130,000 $130,000 Key Employee Officer 416(i)(1)(A)(i) $185,000 $185,000 Social Security Taxable Wage Base $142,800 $137,700

Information contained herein has been obtained from sources considered reliable, but its accuracy and completeness are not guaranteed. It is not intended as the primary basis for financial planning or investment decisions and should not be construed as advice meeting the particular investment needs of any investor. This material has been prepared for information purposes only and is not a solicitation or an offer to buy any security or instrument or to participate in any trading strategy. Past performance is no guarantee of future results.

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