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2021 Limits for Retirement Plan Contributions

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2021 Limits for Retirement Plan Contributions

Retirement plan compensation and contribution limits are subject to annual cost-of-living adjustments.  On Oct. 26, 2020, the Internal Revenue Service (IRS) announced updated limits for retirement plans in 2021, reflecting cost-of-living adjustments for the coming tax year. 

Most limits remain unchanged for 2021, however the annual compensation limit has increased slightly from $285,000 to $290,000.

Below provides a summary of key limits for 2020 and 2021:

Complete details on changes for the coming tax year can be found in Notice 2020-79, posted on IRS.gov.

If you have additional questions or would like to discuss your retirement plan please reach out to a member of our team.

DHGWA Retirement Plan Services Team

Jason Lunsford, MBA, CRPS®, AAMS®, AIF®, PPC™ / Practice Leader/Senior Advisor

Billy Bridgeman, CRPC® / Financial Advisor

Webb Tyndall, CRPS / Financial Advisor

Justin Baas, CFP® / Financial Advisor

Davis Fleming / Associate Financial Advisor

Kim Surrett / Operations Associate

The information in this communication should not be considered investment advice to you, nor an offer to buy or sell any securities or financial instruments. The services, or investment strategies mentioned above may not be available to, or suitable, for you. Consult a financial advisor or tax professional before implementing any investment, tax or other strategy mentioned herein. All investments may lose money.