News
IRS Announces 2021 Retirement Plan Limits
Posted 10.27.20
The Internal Revenue Service (IRS) has released Notice 2020-79, containing cost-of-living adjustments for 2021 that affect amounts employees can contribute to 401(k) plans and IRAs, most of which remain unchanged.
The following limits increased for 2021:
- The annual limit for defined contribution plans (for example, 401(k) plans, profit sharing plans and money purchase plans) is increased to $58,000, up from $57,000.
- The annual compensation limit (applicable to many retirement plans) is increased to $290,000, up from $285,000.
Refer to the below legal update for details.