Uniglobal can help you and your organization prepare for what's next.
The IRS released the cost of living adjustments (COLA) for various retirement plan limitations that will take effect on January 1, 2021.
While 2020 brought increases to almost every important limit we can think of, 2021 does welcome in a few impactful limit increases too.
|Plan Section Limit||2020||2021|
|Maximum Defined Contribution Annual Additions||$57,000||$58,000|
|Salary Deferral 401(k)/403(b) Limit||$19,500||$19,500|
|Maximum Compensation for Retirement Plan Purposes||$285,000||$290,000|
|HCE Compensation Limit||$130,000||$130,000|
|Key Employee Officer||$185,000||$185,000|
|Key Employee 1% Owner||$150,000||$150,000|
|Social Security Taxable Wage Base||$137,700||$142,800|
More Information on COLA Limit Increase
Learn more about these increases and how they impact your retirement plan by contacting Uniglobal and your Uniglobal consultant.
Additional information on limit changes for 2021 can be found in IRS Notice 2020-79. The IRS page COLA Increases for Dollar Limitations on Benefits and Contributions expands on the highlights in this post. The IRS also provides a tool if you’d like to get a Retirement Savings Check-Up.