The basic salary deferral amount for 401(k) and similar workplace plans remains the same in 2021 at $19,500. The catch-up amount for those 50 and older remains at $6,500. While these limits remain unchanged, the overall limit for these plans goes up from $57,000 to $58,000 in 2021. That helps workers whose employers allow special after-tax salary deferrals, as well as self-employed individuals who can save to the limit in individual 401(k)s or SEP retirement plans. 

For everyone else, the IRA contribution limits are flat, remaining the same for 2021 at $6,000, with a $1,000 catch-up limit if you are 50 or older.

Good Tax Planning and decision-making requires a proactive approach and is why it is firmly embedded in our Financial Planning process and that of our Investment Management. It is best done in coordination with your tax professional.

Please take a few moments to review our LPL E-Pocket Tax Table today, so we can plan together for a better tomorrow.