{"id":385,"date":"2020-10-28T11:58:44","date_gmt":"2020-10-28T15:58:44","guid":{"rendered":"https:\/\/www.macroviewim.com\/blog\/?p=385"},"modified":"2020-10-28T12:54:22","modified_gmt":"2020-10-28T16:54:22","slug":"irs-announces-2021-contribution-benefit-limits","status":"publish","type":"post","link":"https:\/\/www.macroviewim.com\/blog\/irs-announces-2021-contribution-benefit-limits\/","title":{"rendered":"IRS Announces 2021 Contribution, Benefit Limits"},"content":{"rendered":"\n

The IRS has announced cost-of-living adjustments affecting dollar limitations for pension plans and other retirement-related items for tax year 2021 and after a year full of change there will be little changes to the limits next year.<\/p>\n\n\n\n

Important limits for Plan Sponsors to be aware of:<\/strong><\/p>\n\n\n\n

401k Plan Limits<\/strong><\/p>\n\n\n\n

<\/td>2021<\/strong><\/td>2020<\/strong><\/td><\/tr>
Maximum Employee Deferral<\/td>$19,500<\/td>$19,500<\/td><\/tr>
Catch-Up Contribution Limit<\/td>$6,500<\/td>$6,500<\/td><\/tr>
Maximum All Contributions*<\/td>$58,000<\/td>$57,000<\/td><\/tr>
Annual Compensation Limit<\/td>$290,000<\/td>$285,000<\/td><\/tr>
HCE Income Definition<\/td>$130,000<\/td>$130,000<\/td><\/tr>
Key-Employee Income Definition<\/td>$185,000<\/td>$185,000<\/td><\/tr><\/tbody><\/table>
*Overall cap, including the $19,500 (pre-tax or Roth in any combination) salary deferrals plus any employer contributions and employer after tax contributions (if allowed). Does not apply to catch-up contributions.<\/em><\/figcaption><\/figure>\n\n\n\n
<\/div>\n\n\n\n

Important limits pertaining to individuals (outside of 401K):<\/strong><\/p>\n\n\n\n

TRADITIONAL IRA LIMITS<\/strong><\/p>\n\n\n\n

<\/td>2021<\/strong><\/td>2020<\/strong><\/td><\/tr>
Contribution Limits<\/td>$6,000<\/td>$6,000<\/td><\/tr>
Catch-Up Limit<\/td>$1,000<\/td>$1,000<\/td><\/tr>
Eligibility: Pre-Tax Cont. (if saver also covered by workplace plan)<\/strong><\/td><\/td><\/td><\/tr>
Single<\/td>$66,000 – $76,000<\/td>$65,000 – $75,000<\/td><\/tr>
Married Filing Jointly<\/td>$105,000 – $125,000<\/td>$104,000 – $124,000<\/td><\/tr>
Eligibility: Pre-Tax Cont. (if spouse covered by workplace plan)<\/strong><\/td><\/td><\/td><\/tr>
Married Filing Jointly<\/td>$198,000 – $208,000<\/td>$196,000 – $206,000<\/td><\/tr><\/tbody><\/table><\/figure>\n\n\n\n
<\/div>\n\n\n\n

ROTH IRA LIMITS<\/strong><\/p>\n\n\n\n

<\/td>2021<\/strong><\/td>2020<\/strong><\/td><\/tr>
Contribution Limits<\/td>$6,000<\/td>$6,000<\/td><\/tr>
Catch-Up Limit<\/td>$1,000<\/td>$1,000<\/td><\/tr>
Eligibility: Income Phase-Out Limits<\/strong><\/td><\/td><\/td><\/tr>
Single<\/td>$125,000 – $140,000<\/td>$124,000 – $139,000<\/td><\/tr>
Married Filing Jointly<\/td>$198,000 – $208,000<\/td>$196,000 – $206,000<\/td><\/tr><\/tbody><\/table><\/figure>\n\n\n\n
<\/div>\n\n\n\n

SAVER’S CREDIT<\/strong><\/p>\n\n\n\n

\n
<\/td>2021<\/strong><\/td>2020<\/strong><\/td><\/tr>
Single<\/td>$33,000<\/td>$32,500<\/td><\/tr>
Married Filing Jointly<\/td>$66,000<\/td>$65,000<\/td><\/tr><\/tbody><\/table>
The income limit for the saver’s credit for low and moderate-income workers<\/em><\/figcaption><\/figure>\n\n\n\n

<\/p>\n<\/div><\/div>\n\n\n\n

<\/div>\n","protected":false},"excerpt":{"rendered":"

The IRS has announced cost-of-living adjustments affecting dollar limitations for pension plans and other retirement-related items for tax year 2021 and after a year full of change there will be little changes to the limits next year. Important limits for Plan Sponsors to be aware of: 401k Plan Limits 2021 2020 Maximum Employee Deferral $19,500… Read more »<\/a><\/p>\n","protected":false},"author":2,"featured_media":397,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":[],"categories":[41],"tags":[45,76,63,46,44,78],"_links":{"self":[{"href":"https:\/\/www.macroviewim.com\/blog\/wp-json\/wp\/v2\/posts\/385"}],"collection":[{"href":"https:\/\/www.macroviewim.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.macroviewim.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.macroviewim.com\/blog\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.macroviewim.com\/blog\/wp-json\/wp\/v2\/comments?post=385"}],"version-history":[{"count":11,"href":"https:\/\/www.macroviewim.com\/blog\/wp-json\/wp\/v2\/posts\/385\/revisions"}],"predecessor-version":[{"id":400,"href":"https:\/\/www.macroviewim.com\/blog\/wp-json\/wp\/v2\/posts\/385\/revisions\/400"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.macroviewim.com\/blog\/wp-json\/wp\/v2\/media\/397"}],"wp:attachment":[{"href":"https:\/\/www.macroviewim.com\/blog\/wp-json\/wp\/v2\/media?parent=385"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.macroviewim.com\/blog\/wp-json\/wp\/v2\/categories?post=385"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.macroviewim.com\/blog\/wp-json\/wp\/v2\/tags?post=385"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}