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.