The IRS has released the annual limits for 2021:

 

 Elective Deferral Limit$19,500unchanged
 Catch-Up Contribution Limit$6,500unchanged 
 Annual Addition Limit$58,000Increased from $57,000
 Annual Compensation Limit$290,000Increased from $285,000
Highly Compensated Employee Limit$130,000unchanged
Social Security Wage Base$142,800Increased from $137,700

 

2021 WITHHOLDING AMOUNTS PER PAY PERIOD

For those that wish to divide their withholding for the entire year to reach maximum contribution.

 

  Monthly

(12/year)

Semi-Monthly (24/year)Bi-Weekly (26/year)Weekly

(52/year)

Elective Deferral$1625.00$812.50$750.00$375.00
Catch-Up

Contribution

 

$541.66

 

$270.83

 

$250.00

 

$125.00

Deferral+Catch-Up$2166.66$1083.33$1000.00$500.00

 

 NOTE

  • Catch-Up contributions only available to employees age 50 and over. 
  • Deferral limits are the combined amounts for Roth and Pre-tax Deferrals.
  • You may need to distinguish between the deferral and catch-up amounts with your payroll provider.
  • Deferral limits are per person and on a calendar year basis.

Annual Addition Limit is the total that may be added to your account via elective deferrals, employer contributions and forfeitures and do not include catch-up amounts. 

 

About Kline, Keppel & Koryak

Located in Northeast Ohio, Kline, Keppel & Koryak is an independent Third Party Administrator supporting a wide variety of employers throughout the country, many in Western Pennsylvania and Northeast Ohio. We specialize in the Plan Design, Administration, Compliance Testing, and Reconciliation for all types of Defined Contribution Plans including: 401(k) Plans, Safe Harbor Plans, Cross-Tested or New Comparability Plans, Profit Sharing Plans, ESOP Plans, and Money Purchase Plans.  We work with any investment platform that offers recordkeeping services in conjunction with an independent TPA.  In addition, we provide recordkeeping services for plans not wanting to utilize a Daily Recordkeeping Platform.  Our personalized service keeps you, the client, in mind in  supporting you with all of your Retirement Plan needs. Contact us today!