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Retirement Plan: 2021 Annual Inflation-Adjusted Amounts

2020 -10/27 The IRS has announced the 2021 annual inflation-adjusted amounts for retirement plans. The limit on contributions by employees who participate in 401(k), 403(b), most 457 plans and the federal Thrift Savings Plan will remain unchanged at $19,500. The catch-up contribution limit for employees aged 50 and over who participate in these plans will remain $6,500. The limit on annual IRA contributions will remain $6,000. The additional catch-up contribution limit for individuals aged 50 and over will remain $1,000. However, the income ranges for determining eligibility to make deductible contributions to traditional IRAs, to contribute to Roth IRAs and to claim the Saver’s Credit will increase for 2021.

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