Federal Tax

IRS 2021 Annual Inflation-Adjusted Amounts for Retirement Plans

The IRS has announced the 2021 annual inflation-adjusted amounts for retirement plans. The limit on contributions by employees who participate in 401(k), 403(b), most 457 plans and the federal Thrift Savings Plan will remain unchanged at $19,500. The catch-up contribution limit for employees aged 50 and over who participate in these plans will remain $6,500. The limit on annual IRA contributions will remain $6,000. The additional catch-up contribution limit for individuals aged 50 and over will remain $1,000. 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 will increase for 2021. Contact Cg for more information. © 2020