{"id":8780,"date":"2020-10-28T10:01:56","date_gmt":"2020-10-28T14:01:56","guid":{"rendered":"https:\/\/gtm.com\/business\/?p=8780"},"modified":"2024-08-30T11:09:11","modified_gmt":"2024-08-30T15:09:11","slug":"2021-retirement-plan-limits","status":"publish","type":"post","link":"https:\/\/gtm.com\/business\/2021-retirement-plan-limits\/","title":{"rendered":"What are the 2021 Retirement Plan Limits?"},"content":{"rendered":"<p><img loading=\"lazy\" decoding=\"async\" class=\"alignnone size-full wp-image-8781\" src=\"https:\/\/gtm.com\/business\/wp-content\/uploads\/2020\/10\/2021-retirement-plan-limits.jpg\" alt=\"2021 retirement plan limits\" width=\"1024\" height=\"685\" srcset=\"https:\/\/gtm.com\/business\/wp-content\/uploads\/2020\/10\/2021-retirement-plan-limits.jpg 1024w, https:\/\/gtm.com\/business\/wp-content\/uploads\/2020\/10\/2021-retirement-plan-limits-980x656.jpg 980w, https:\/\/gtm.com\/business\/wp-content\/uploads\/2020\/10\/2021-retirement-plan-limits-480x321.jpg 480w\" sizes=\"(min-width: 0px) and (max-width: 480px) 480px, (min-width: 481px) and (max-width: 980px) 980px, (min-width: 981px) 1024px, 100vw\" \/><\/p>\n<p>The Internal Revenue Service (IRS) has released their 2021 retirement plan limits via <a href=\"https:\/\/www.irs.gov\/pub\/irs-drop\/n-20-79.pdf\">Notice 2020-79<\/a>, containing cost-of-living adjustments for 2021 that affect amounts employees can contribute to 401(k) plans and IRAs, most of which <strong>remain unchanged<\/strong>.<\/p>\n<p>Key limits that remain unchanged include the following:<\/p>\n<ul>\n<li>The employee contribution limit for 401(k) plans will remain <strong>$19,500<\/strong>. The catch-up contribution limit for employees aged 50 and over also remains unchanged at $6,500.<\/li>\n<li>The employee contribution limit for IRAs will remain <strong>$6,000<\/strong>. The catch-up contribution limit for employees aged 50 and over also remains unchanged, at $1,000.<\/li>\n<li>The employee contribution limit for SIMPLE IRAs and SIMPLE 401(k) plans will remain <strong>$13,500<\/strong>.<\/li>\n<li>The limits used to define a \u201chighly compensated employee\u201d and a \u201ckey employee\u201d will remain <strong>$130,000<\/strong> and <strong>$185,000<\/strong>, respectively.<\/li>\n<\/ul>\n<h2>2021 Increases<\/h2>\n<p>The following limits increased for 2021:<\/p>\n<ul>\n<li>The <strong>annual limit for defined contribution plans<\/strong> (for example, 401(k) plans, profit-sharing plans, and money purchase plans) is increased to <strong>$58,000<\/strong>, up from $57,000.<\/li>\n<li>The <strong>annual <\/strong><strong>compensation limit<\/strong> (applicable to many retirement plans) is increased to <strong>$290,000<\/strong>, up from $285,000.<\/li>\n<\/ul>\n<p>The income ranges for determining eligibility to make deductible contributions to traditional IRAs, to contribute to Roth IRAs, and to claim the Saver\u2019s Credit (also known as the Retirement Savings Contributions Credit) also increased for 2021. The IRS\u2019 <a style=\"font-weight: 500;\" href=\"https:\/\/www.irs.gov\/newsroom\/income-ranges-for-determining-ira-eligibility-change-for-2021\">news release<\/a><span style=\"font-weight: 500;\"> contains more details.<\/span><\/p>\n<p>GTM makes it easy to track your employee retirement contributions with <a href=\"https:\/\/gtm.com\/business\/what-we-offer\/human-capital-management\/\">isolved<\/a>. Changes and updates are made once, and the info flows throughout the system, eliminating duplicate entry and saving time. Plus employees can see all their benefits info any time, from any device. <a href=\"https:\/\/gtm.com\/business\/get-a-quote\/\">Request a free quote<\/a> to learn more.<\/p>\n<p>&nbsp;<\/p>\n<p><em>\u00a92020 Zywave, Inc. All rights reserved.<\/em><\/p>\n","protected":false},"excerpt":{"rendered":"<p>The IRS has released their 2021 retirement plan limits, containing cost-of-living adjustments for employee contributions to 401(k)s and other plans.<\/p>\n","protected":false},"author":7,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_et_pb_use_builder":"","_et_pb_old_content":"","_et_gb_content_width":"","footnotes":""},"categories":[266],"tags":[219,26,36],"post_folder":[],"class_list":["post-8780","post","type-post","status-publish","format-standard","hentry","category-consulting-services","tag-401k","tag-irs","tag-retirement"],"_links":{"self":[{"href":"https:\/\/gtm.com\/business\/wp-json\/wp\/v2\/posts\/8780","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/gtm.com\/business\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/gtm.com\/business\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/gtm.com\/business\/wp-json\/wp\/v2\/users\/7"}],"replies":[{"embeddable":true,"href":"https:\/\/gtm.com\/business\/wp-json\/wp\/v2\/comments?post=8780"}],"version-history":[{"count":3,"href":"https:\/\/gtm.com\/business\/wp-json\/wp\/v2\/posts\/8780\/revisions"}],"predecessor-version":[{"id":8784,"href":"https:\/\/gtm.com\/business\/wp-json\/wp\/v2\/posts\/8780\/revisions\/8784"}],"wp:attachment":[{"href":"https:\/\/gtm.com\/business\/wp-json\/wp\/v2\/media?parent=8780"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/gtm.com\/business\/wp-json\/wp\/v2\/categories?post=8780"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/gtm.com\/business\/wp-json\/wp\/v2\/tags?post=8780"},{"taxonomy":"post_folder","embeddable":true,"href":"https:\/\/gtm.com\/business\/wp-json\/wp\/v2\/post_folder?post=8780"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}