The IRS announced the updated retirement plan limits for 2021. Below, we highlight the notable DC plan limits:
- The annual contribution limit will remain the same at $19,500.
- The age 50 annual catch-up contribution limit will remain the same at $6,500.
- The annual compensation limit will increase from $285,000 to $290,000.
- The Section 415(c) limit will increase from $57,000 to $58,000.
- The highly compensated employee threshold will remain the same at $130,000.
- Visit the IRS publication to learn more.