IRS Inflation Adjusted Limits for 2021

Ernie Guerriero, CLU®,ChFC®,CEBS,CPCU®,CPC®,CMS,AIF®,RICP®,CPFA

The IRS has announced increases in some limits; however, the majority of the limits remain the same.  The 401(k) limit remains at $19,500 and the catch-up limit remains at $6,500.  What has increased:

• Defined Contribution Annual Addition to $58,000 from $57,000
• Annual Compensation Limit to $290,000 from $285,000
• Social Security Wage Base to $142,800 from $137,700