IRS Announces 2021 Retirement Plan Contribution Limits
Industry update: Where and how can your clients contribute next year?
How much can your clients save for retirement in 2021 in tax-advantaged accounts? The Treasury Department has announced inflation-adjusted figures for retirement account savings for 2021. What savers can actually contribute to their accounts has remained unchanged for 401(k), 403(b), most 457 plans and Thrift Savings Accounts, the IRS said in its announcement. Individual retirement account contribution limits are also the same for 2021 — $6,000 with an additional catch-up contribution of $1,000 for people 50 and older. SIMPLE retirement accounts still have the limit at $13,500 for next year.