The IRS updates retirement plan contribution limits for defined contribution plans such as the PCA Retirement Plan each year.

The limits for 2021 are as follows:

Elective Deferral Limit (salary reduction contribution): $19,500 (unchanged from 2020). Internal Revenue Code Section 402(g)

Defined Contribution Limit (employer plus employee): $58,000 ($1,000 increase from 2020). Internal Revenue Code Section 415(c)

Catch-up Contribution Limit (age 50 or older): $6,500 (unchanged from 2020). Internal Revenue Code Section 414(v)

If age 50 or older, a total of $26,000 in elective deferral contributions will be allowed in 2021. This amount is unchanged from 2020.

Source: IRS Retirement Plan section

 

Posted 11/19/20