What is IRS 401k limits 2021 vs 2020?

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The Internal Revenue Service (IRS) updated the 401k contribution limit on Oct. 26, 2020, as under :

  • Employees can contribute up to $19,500 to their 401(k) plan for 2020 and 2021.
  • Catch up contribution for persons aged 50 or over is  $6,500 in 2020 and 2021.

As far as the contribution limit under 401k plan for employers is concerned, they can contribute up to $58,000 (or $64,500 with the catch-up contribution). In the year 2020 , the limit was $57,000 (catch-up at $63,500) in 2020;

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