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:
1.) The elective deferral limit for employees participating in 401(k), 403(b), and most 457 plans remains unchanged at $19,500;
2.) The 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.) The limit on annual contributions to a SIMPLE plan remains unchanged at $13,500.
4.) The 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.