One of the most important aspects of retirement planning is saving your money for your future. Of the various ways to do this, investing in a retirement plan is one of the best. So, how much can you save in a retirement plan in 2021? Here’s the breakdown:
The IRS has just released the contribution and benefit limits on pension plans and other retirement items for the 2021 tax year. These changes, published in Notice 2020-79, have kept most contribution limits unchanged for various retirement planning options.
2021 CONTRIBUTION LIMITS
Limits to contributions into a 401(k), 403(b), and most 457 Plans remains unchanged at $19,500 annually.
Catch-up contributions for 401(k), 403(b), and most 457 Plans remains unchanged at $6,000 annually.
The limits for those contributing to an Individual Retirement Account (IRA) have remained the same at $6,000.
To see the updated limits and terms on all retirement plan types, review the IRS Notice 2020-79 here.
If you have any additional questions regarding the 2021 contribution limits, please contact ADMIN Partners at email@example.com or at 877-484-4400.