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For 2021, 401(k) Contribution Limit Unchanged for Employees, Up for Employers

October 27, 2020

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.

To read more, please visit: For 2021, 401(k) Contribution Limit Unchanged for Employees, Up for Employers