It is that time of the year, again. The Internal Revenue Service has announced inflation-adjusted figures for retirement account savings for 2021.<\/p>\n\n\n\n
Effective January 1, 2021, the limitation on the annual benefit under a defined benefit plan under \u00a7 415(b)(1)(A) remains unchanged at $230,000.<\/p>\n\n\n\n
The limitation for defined contribution plans under \u00a7 415(c)(1)(A) is increased for 2021 from $57,000 to $58,000.<\/p>\n\n\n\n
The limitation under \u00a7 402(g)(1) on the exclusion for elective deferrals described in \u00a7 402(g)(3) remains unchanged at $19,500.<\/p>\n\n\n\n
The annual compensation limit under \u00a7\u00a7 401(a)(17), 404(l), 408(k)(3)(C), and 408(k)(6)(D)(ii) is increased from $285,000 to $290,000.<\/p>\n\n\n\n
The dollar limitation under \u00a7 416(i)(1)(A)(i) concerning the definition of \u201ckey employee\u201d in a top-heavy plan remains unchanged at $185,000.<\/p>\n\n\n\n
The dollar amount under \u00a7 409(o)(1)(C)(ii) for determining the maximum account balance in an employee stock ownership plan subject to a 5-year distribution period is increased from $1,150,000 to $1,165,000, while the dollar amount used to determine the lengthening of the 5-year distribution period remains unchanged at $230,000.<\/p>\n\n\n\n
The limitation used in the definition of \u201chighly compensated employee\u201d under \u00a7 414(q)(1)(B) remains unchanged at $130,000.<\/p>\n\n\n\n
The dollar limitation under \u00a7 414(v)(2)(B)(i) for catch-up contributions to an applicable employer plan other than a plan described in \u00a7 401(k)(11) or \u00a7 408(p) for individuals aged 50 or over remains unchanged at $6,500. The dollar limitation under \u00a7 414(v)(2)(B)(ii) for catch-up contributions to an applicable employer plan described in \u00a7 401(k)(11) or \u00a7 408(p) for individuals aged 50 or over remains unchanged at $3,000.<\/p>\n\n\n\n
The compensation amount under \u00a7 408(k)(2)(C) regarding simplified employee pensions (SEPs) is increased from $600 to $650.<\/p>\n\n\n\n
The limitation under \u00a7 408(p)(2)(E) regarding SIMPLE retirement accounts remains unchanged at $13,500.<\/p>\n\n\n\n
The limitation on the aggregate amount of length of service awards accruing with respect to any year of service for any bona fide volunteer under \u00a7 457(e)(11)(B)(ii) concerning deferred compensation plans of state and local governments and tax-exempt organizations remains unchanged at $6,000.<\/p>\n\n\n\n
The limitation on deferrals under \u00a7 457(e)(15) concerning deferred compensation plans of state and local governments and tax-exempt organizations remains unchanged at $19,500.<\/p>\n\n\n\n
The limitation under \u00a7 664(g)(7) concerning the qualified gratuitous transfer of qualified employer securities to an employee stock ownership plan remains unchanged at $50,000.<\/p>\n\n\n\n
The compensation amount under \u00a7 1.61-21(f)(5)(i) of the Income Tax Regulations concerning the definition of \u201ccontrol employee\u201d for fringe benefit valuation purposes remains unchanged at $115,000. The compensation amount under \u00a7 1.61-21(f)(5)(iii) is increased from $230,000 to $235,000.<\/p>\n\n\n\n
The dollar limitation on premiums paid with respect to a qualifying longevity annuity contract under \u00a7 1.401(a)(9)-6, A-17(b)(2)(i) of the Income Tax Regulations remains unchanged at $135,000.<\/p>\n
<\/span><\/p>","protected":false},"excerpt":{"rendered":" It is that time of the year, again. The Internal Revenue Service has announced inflation-adjusted figures for retirement account savings for 2021. Effective January 1, 2021, the limitation on the annual benefit under a defined benefit plan under \u00a7 415(b)(1)(A) … Continue reading