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Jack Owen’s Tax-Exempt Alert OCTOBER 2020

2021 Changes in Annual Qualified Retirement Plan Benefit Limits

The IRS recently announced the new annual qualified retirement plan benefit limits for 2021. Set forth in the table below is a summary of the most relevant new limits for 2019 – 2021.

These lists are mainly of interest to those of you familiar with retirement plans. If you do not understand the types of retirement plans referred to below or have any other questions regarding retirement plans in general, please contact our office for more information. Thank you.

2019 2020 2021
415 Limit for Defined Benefit Plans $225,000 $230,000 $230,000
415 Limit for Defined Contribution Plans $56,000 $57,000 $58,000
401(k) and 403(b) Maximum Deferral $19,000 $19,500 $19,500
Catch-up Contributions (age 50 and over) $6,000 $6,500 $6,500
Social Security Taxable Wage Base $132,300 $137,700 $142,800
Maximum Compensation Allowable for Benefit Purposes $280,000 $285,000 $290,000
Compensation For Highly Compensated Employee (“HCE”) Status $125,000 $130,000 $130,000
SIMPLE Maximum Deferral $13,000 $13,500 $13,500
457 Maximum Deferral $19,000 $19,500 $19,500

We sincerely hope you appreciate receiving the information in this newsletter. But in case you do not want to receive it, please contact Diane Trichtinger at 412-745-1040, or [email protected] to be removed from this list. Likewise, please contact Diane with any colleagues or other persons who you would like to add to this list.

Note: This provides general information regarding matters of interest to tax-exempt organizations. Such information is neither legal advice nor legal opinion concerning particular situations. If legal advice or opinion is required, legal counsel should be consulted.

We would be pleased to address any questions you may have regarding the foregoing or any other tax-exempt issues. For further information, please contact Mike Dutkovich (412-765-0535), [email protected]; Susan Ott (412-745-9900), [email protected]; or Jack Owen (412-765-1020), [email protected].

©Owen Law Group, LLC, 310 Grant Street, Suite 1005, Pittsburgh, PA 15219 412.745.1040

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