The Internal Revenue Service (“IRS”) announced on October 26, 2020, the retirement plan contribution limits, adjusted for cost-of-living adjustments, for 2021.  These adjustments can be found in greater detail in IRS Notice 2020-79.

The COVID-19 pandemic’s continuing impact on the U.S. economy contributed to relatively flat changes in the 2021 COLA amounts as U.S. economic deflation during the first half of 2020 impacted the COLA metrics.

The IRS increased the IRS annual compensation amounts, but limits for elective deferrals and catch-up contribution limits for age 50+ employees remained largely unchanged. The SSA’s 1.3 percent increase in benefits is one of the smallest increases historically for Social Security and Supplemental Security Income beneficiaries.

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Provided by Wiss’ Employee Benefit Plan Group

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