The 2021 Cost of Living Adjustments for various qualified retirement plans and other amounts have recently been released by the Internal Revenue Service. The numbers have been updated based on IRS Notice (2020-79). The change in the employee benefit plan limitations is due to an increase in the Cost of Living Index meeting the statutory thresholds. Plan sponsors should verify that their administrative and payroll systems reflect the correct limits.
NOTE: This publication is not intended as legal or tax advice. It must not be used as a basis for legal or tax advice, and is not intended to be used and cannot be used to avoid any penalties that may be imposed on a tax payer. Taxpayers should seek advice regarding their particular circumstances from an independent tax adviser.