The IRS recently released the 2021 cost-of-living adjustments (COLAs) for pension and 401(k) limitations.
Here are the highlights:
- The IRC Section 415(c) contribution limit applicable to defined contribution retirement plans increased from $57,000 to $58,000 for 2021.
- The IRC Section 401(a)(17) annual compensation limit applicable to retirement plans increased from $285,000 to $290,000 for 2021.
- The elective deferral limit under IRC Section 402(g) remains the same at $19,500 for 2021.
- The catch-up contribution limit under IRC Section 414(v) for individuals aged 50 or over remains the same at $6,500 for 2021.
View our summary of the indexed amounts and other commonly used limits for 2018 to 2021.