Wednesday, January 20, 2021

COST-OF-LIVING ADJUSTMENTS - 2021

 COST-OF-LIVING ADJUSTMENTS - 2021 

Pension Plan and Related Limits

2021

Pre-tax elective deferral maximum under IRC § 401(k), 403(b), and 457(b) plans (IRC §§ 402(g)(3) & 457 (e)(15))

$19,500

Age 50 and older “catch-up” adjustment for 401(k), 403(b), and governmental 457(b) plans and SEPs (IRC § 414(v)(2)(B)(i))

$6,500

Annual compensation limit under IRC §§ 401(a)(17), 404(l) and 408(k)

$290,000

Annual benefit limit for defined benefit plans under IRC § 415(b)

$230,000

Annual contribution limit for defined contribution plans under IRC § 415(c)

$58,000

Highly compensated employee threshold for purposes of nondiscrimination testing in the following year under IRC § 414(q)(1)(B)

$130,000

Key employee threshold for officers for top heavy plan under IRC § 416(i)(1)(A)(i)

$185,000

ESOP account balance for 5 and 1 year distributions under IRC § 409(o)(1)(C)(ii)

$1,165,000  and $230,000

Limit on premiums paid for qualified longevity annuity contracts (QLACs) under Treas. Reg. § 1.401(a)(9)-6 (adopted 2014)

$135,000

Minimum earnings level to qualify for SEP under IRC § 408(k)

$650

SIMPLE plan elective deferral limit under IRC § 408(p)(2)(E)

$13,500

SIMPLE 401(k) or IRA age 50 catch-up (IRC § 414(v)(2)(B)(ii))

$3,000

Basic/Roth IRA contribution limit under IRC §§ 219(b)(5)(A) & 408A. (Age 50 $1,000 IRA catchups do not have cost-of-living adjustments)

$6,000

Adjusted gross income (AGI) phase-out of deduction for IRA where the participant or spouse contributing to the IRA also participates in an employer-sponsored retirement plan (IRC § 219(g)(1) & (3))

For married joint filers –

For single filers –

$105,000 to $125,000

 

 

 

$66,000 to

$76,000

AGI phase-out of deduction for IRA for married persons filing jointly where participant's spouse who is contributing to the IRA also participates in the employer-sponsored retirement plan (IRC § 219(g)(7))

$198,000 to $208,000

AGI Phase-out deduction for Roth IRA for married persons filing jointly who are making contributions to a Roth IRA (IRC § 408A(c)(3)(B)).  For married joint filers –

For single filers –

$198,000 to $208,000

 

$125,000 to $140,000

Health Savings Account contribution limits (single and family)

$3,600 and $7,200

PBGC guaranteed benefit (annual single life annuity beginning at age 65)

$72,409

PBGC flat-rate premiums per participant for a single-employer plans

$86

PBGC variable-rate premium for single-employer plans per $1,000 of Unfunded Vested Benefits

$46

PBGC (flat-rate) premiums for multiemployer plans per participant

$31

Taxable wage base subject to FICA tax

$142,800

Sample DOL Penalties – Per Day

-- Failure to file annual report (Form 5500) - ERISA § 502(c)(2) (originally $1,000 a day)

-- Failure to provide blackout notices or notices of diversification rights -  ERISA§ 502(c)(7) (originally $100 a day)

 

 

$2,223

  

$141

                                                                                                                                                      

 

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