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As I’m settling into my new job and looking over benefits options, I’m trying to decide how to do 401k deductions from my paycheck, percentage or flat amount. Anyway, I tried googling 2021 contribution limits, but couldn’t find anything. Is there a certain time of the year that’s normally announced? Is it likely to increase from the 2020 numbers? Any ideas? Thanks!
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The 2020 limit was announced by the IRS in early November of 2019. So likely similar timing this year for 2021. Last year the limit went up by $500 to $19,500 (and the catch up contribution for those 50+ increased $500 to $6500).“Compound interest is the eighth wonder of the world. He who understands it, earns it … he who doesn’t … pays it.” -
Here is a link to the IRS web site for when they made the announcement for pension plans for the past several years.
It is tied to inflation (so, they have to figure out how much inflation we have had) and when there are increases, they are made in $500.00 increments.
As srbalnco7 noted, the 2020 limit was announced on November 6, 2019
2019 limit: Nov 1, 2018
2018 limit: Oct 19, 2017
2017 limit: Oct. 27, 2016
2016 limit: Oct. 21, 2015
2015 limit: Oct. 23, 2014
2014 limit: Oct. 31, 2013
2013 limit: Oct. 18, 2012
2012 limit: Oct. 20, 2011
2011 limit: Oct. 28, 2010
2010 limit: Oct. 15, 2009
2009 limit: Oct. 16, 2008
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Looks like the limits will not change for 2021.Comment
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