For 2021, 401(k) Contribution Limit Unchanged for Employees, Up for Employers
The IRS announced that employee 401(k) contributions for plan year 2021 will once again top off at $19,500 with an additional $6,500 catch-up contribution allowed for those turning age 50 or older. Maximum contribution from all sources (employer and employee combined) will rise by $1,000 next year to $58,000 for all employees age 49 or younger, and $64,500 if age 50 or older.
During open enrollment, it is suggested that employees consider increasing their savings rate for next year.
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