Contribution Limits Remain Unchanged for 2021; Saver’s Credit Limits Increase
The IRS recently announced that contribution limits, which are based on cost-of-living adjustments, will remain unchanged in 2021. This means state of Missouri employees can contribute up to $19,500 in 2021, plus an additional $6,500 in catch-up contributions for those who are 50 or older. In addition, those who are within three years of retirement and have never maxed out before can contribute double the regular annual contribution amount ($39,000). Below are the contribution limits for the 2021 tax year.
|Maximum Annual Deferral – under age 50||$19,500||$19,500||$19,000|
|Age 50 and Over Catch-up Provision Limit||$6,500 ($26,000 total)||$6,500 ($26,000 total)||$6,000 ($25,000 total)|
|Pre-Retirement Catch-up Provision Limit||$19,500 ($39,000 total)||$19,500 ($39,000 total)||$19,000 ($38,000 total)|
For more information on contribution limits, please visit the IRS website.
2021 Saver's Credit Limits
Despite contributions limits staying the same, income limits for the Saver’s Credit will increase in 2021. The Saver’s Credit income limits for low- and moderate-income workers is $66,000 for married couples filing jointly for 2021, $49,500 for heads of household, and $33,000 for singles and those married filing separately.
Visit the IRS's website for more information on the Saver's Credit.