Compliance Alert: IRS Announces Retirement Plan Limits for 2021
On October 26, 2020, the IRS announced the new 2021 retirement plan limits. Most limits remain unchanged, including the 402(g) elective deferral limit. The Social Security Administration (SSA) also announced that the maximum amount of earnings subject to the Social Security tax (taxable maximum) will increase to $142,800 in 2021, up from the 2020 limit of $137,700.
Here is a chart showing some of the new limits:
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