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:

For more details, see this release from the IRS or visit the SSA website.

Note: This feature is to provide general information only, does not constitute legal advice, and cannot be used or substituted for legal or tax advice. Opinions expressed are those of the author, and do not necessarily represent the opinions of Cammack Retirement Group.

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