IRS RELEASES 2021 QUALIFIED RETIREMENT PLAN AMOUNTS

The IRS has released cost-of-living adjustments to pension plans and other retirement-related items for 2021. Many of the key contribution limits remain unchanged. For instance, the (1) elective deferral limit for employees participating in 401 (k), 403 (b), and most 457 plans remains unchanged at $19,500; (2) catch-up contribution limit for employees aged 50 and over participating in 401 (k), 403 (b), and most 457 plans remains unchanged at $6,500; (3) limit on annual contributions to a SIMPLE plan remains unchanged at $13,500; and (4) limit on annual contributions to an IRA remains unchanged at $6,000. 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 all increased for 2021.