The IRS has announced the 2021 cost of living adjustments in regards to certain limits imposed on retirement plans. Below is a comparative list between 2020 and 2021 regarding the adjustments.
| 2021 | 2020 | |
| 401(k) and 403(b) Contribution Limits | $19,500 | $19,500 |
| 401(k) and 403 (b) Catch-Up Contribution | $6,500 | $6,500 |
| Defined Contribution Limits | $58,000 | $57,000 |
| Compensation plan limit | $290,000 | $285,000 |
| IRA Contribution Limit (Traditional and Roth) | $6,000 | $6,000 |
| IRA Catch Up Contribution | $1,000 | $1,000 |
| SEP Maximum Contribution | $58,000 | $57,000 |
| SIMPLE Maximum Contributions | $13,500 | $13,500 |
| SIMPLE Catch-up Contributions | $3,000 | $3,000 |
| Social Security Taxable Wage Base | $142,800 | $137,700 |
Please contact your Somerset advisor at 317-472-2200 or with any questions.
