The IRS announced has their cost of living adjustments affecting dollar limitations for pension plans and other retirement-related items for tax year 2021.
Should you have any immediate worries or concerns, please don’t hesitate to reach out to us. We are here to support you and your employees in any way we can.
“Key employees” and “highly compensated employees” are terms used for testing purposes in the annual nondiscrimination testing of a retirement plan. The $6,500 catch-up contribution limit for participants age 50 or older applies from the start of the year to those turning 50 at any time during the year. Source: IRS Notice 2020-79.
This information but is not intended as authoritative guidance or tax or legal advice. You should consult your attorney or tax advisor for guidance on your specific situation. In no way does advisor assure that, by using the information provided, plan sponsor will be in compliance with ERISA regulations.
Securities offered through LPL Financial, member FINRA & SIPC. Investment advice offered through Global Retirement Partners, LLC (GRP) a registered investment advisor. GRP, Washington Financial Group and Hub International are separate and unaffiliated with LPL Financial.