Tag Archives: Retirement Contribution Limits

2021 Retirement Contribution Limits – Most Popular No Changes!

With 2019 Taxes delayed filing to mid year this year 2020, it seems like tax season was a constant over the last 4-6 quarters. Add to that, there was a COLA (Cost of Living Adjustment) from 2019 to 2020 but not very many changes from this year, 2020 and next tax year 2021 and it seems like a puzzle.

Not to worry, here are the few changes from 2020 to 2021, again the most popular (bolded) by a long shot had very little adjustments

Limits on Benefits and Contributions20212020
401(k), 403(b), and 457 Plan Elective Deferrals$19,500$19,500
Defined Contribution Plans$58,000$57,000
Defined Benefit Plans$230,000$230,000
SIMPLE Plan Elective Deferrals$13,500$13,500
IRA$6,000$6,000
ROTH$6,000$6,000
“Highly Compensated” Definition$130,000$130,000
“Key Employee” Definition
Officer$185,000$185,000
1% Owner$150,000$150,000
Security Taxable Wage Base$142,800$137,700
Catch Up Contributions Age 50 And Older
401(k), 403(b), and 457 Plans$6,500$6,500
SIMPLE Plans$3,000$3,000
IRA$1,000$1,000
ROTH$1,000$1,000
Source https://definiti-llc.com/ and IRS.Gov/Retirement

Note, there are limitations on certain deductions from above as well as income oriented phase outs, please check with your tax professional for your specific sitiation.

Have a Great “New Deferral Limits” Day!

John A. Kvale CFA, CFP

Founder of J.K. Financial, Inc.

A Dallas Texas based fee only

Financial Planning Total Wealth

Management firm.

jkfinancialinc

street-cents

New 2020 Tax, Contribution Rates … Handy Resources

Here are the new 2020 Tax Rates, Retirement Contribution Rates and a few other Handy reminders to start the year…

A Great Resource for all your tax needs is none other… www.irs.gov… we all pay for it, and it has abundant information…not to worry, they will not know if we are reviewing the site (no increased chance of audit..haha)

The first two from Tax Foundation:

2020 Federal Tax Brackets

2020 Federal Tax Standard Deductions

2020 Comp and Contribution Limits

2020 Comp and Retirement Contribution Limits

Wish there was a way for us to track our own internal referencing of this post … it will be many!

Have a Great “2020 Tax Resource” Day!

John A. Kvale CFA, CFP

Founder of J.K. Financial, Inc.
A Dallas Texas based fee only
Financial Planning Total Wealth
Management firm.
jkfinancialinc
street-cents