IRS Releases 2021 Retirement Limits

The limits for 2021 are now available. The 401(k), 403(b) and 457 Employee Deferral Limit remained unchanged from 2020 at $19,500. The Catch-up Contribution of $6,500 also remained unchanged. 

The Annual Additions Limit for Defined Contribution Plans increased from $57,000 in 2020 to $58,000 in 2021. 

The Compensation Limit increased from $285,000 in 2020 to $290,000 in 2021. 

Make certain these limits are in your payroll system as of January 1, 2021.

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