global Tax New Retirement Plan Contribution Limits for 2021 January 28, 2021 401k contribution limits have changed for this Year. Take a look at some adjustments to the phase-out ranges and contribution limits for 2021. The Internal Revenue Service has issued their annual cost of living adjustments for 401(k) and IRAs, Pension Plans, and other retirement related matters. What has changed for 2021? We share the new limits below. The limits Individual Retirement Account (Roth and Traditional) Contribution Limits202120202019IRA Contribution Limit$6,000$6,000$6,000IRA Catch-Up Contributions$1,000$1,000$1,000401(k), 457 and 403(b) Contribution Limits202120202019401(k), 457 and 403(b) maximum annual elective deferral limit$19,500$19,500$19,000401(k), 457 and 403(b) catch up contribution limit for those 50 and over$6,500$6,500$6,000You can make contributions up to the IRS contribution limits noted above or up to $290,000 in 2021—here’s how that number has changed through the years. 202120202019Annual Compensation$290,000$285,000$280,000SIMPLE- Savings Incentive Match Plan for Employees Contribution Limits202120202019SIMPLE employee deferrals$13,500$13,500$13,000SIMPLE catch-up deferrals$3,000$3,000$3,000Simplified Employee Pension (SEP IRA) Contribution Limits202120202019SEP annual compensation limit$290,000$285,000$280,000SEP minimum compensation$650$600$600SEP maximum contribution$58,000$57,000$56,000Phase-out ranges for 2021: Traditional IRA MAGI Limits202120202019Married filing jointly; a spouse who participates in an employer-sponsored plan$105,000- $125,000$104,000-$124,000$103,000-$123,000Married filing jointly; a spouse who does not participate in an employer sponsored plan$198,000- $208,000$196,000-$206,000$193,000-$203,000Single or Head of Household$66,000- $76,000$65,000- $75,000$64,000-$74,000For Roth IRAs, if your MAGI falls within the applicable range, you can make a partial contribution, but if it exceeds the top of the range, you are not allowed to make a contribution. Roth IRA MAGI Limits202120202019Married Filing Jointly$198,000-$208,000$196,000-$206,000$193,000-$203,000Single or Head of Household$125,000- $140,000$124,000- $139,000$122,000-$137,000What is the social security wage base for 2021? 202120202019Social Security Wage Base$142,800$137,700$132,900Interested in learning more about tax-advantaged retirement saving? Contact our Tax Team for more information.
