2022 Contribution Maximums are Now Available! See here for updates on the information below.
The IRS has released new guidelines for the 2021 Contribution maximums for company-sponsored retirement plans and they’ve increased! If you’re not sure what they are, Leading Retirement Solutions has you covered.
Retirement Plan Maximum Contributions:
IRS guidelines detail the maximum income that an employee (including company owners) may contribute to a company-sponsored retirement plan as well as the maximum contributions an employee (including company owners) may receive from the business.
Contribution Highlights for 2021:
- $58,000 - The total employee + employer contribution that can be made to a 401(k), 403(b), most 457 plans and the federal government’s Thrift Savings Plan under Section 415(c)(1)(A).
- $290,000 - The amount of your compensation that can be taken into account when determining employer and employee Contributions.
- $1,165,000 - The maximum account balance allowed in an employee stock ownership plan (ESOP).
- $142,800 - The maximum amount of your earnings that is taxed by Social Security.
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Additional information can be found on the IRS website.
For more tips and information regarding retirement plans, contact us.
