2021 Cost-of-Living Adjustments Released by IRS

IRS Releases 2021 Cost-of-Living Adjustments

Printable Retirement and H&W COLAs for 2021.

The Internal Revenue Service has released the Cost-of-Living Adjustments (COLAs) for 2021. Most limits were unchanged. Some of the notable 2021 limits for Health & Welfare Benefit Plans are:

  • Health Care FSA maximum contribution limit unchanged at $2,750.
  • Transportation plans: Transit and parking allowances unchanged at $270.
  • Adoption assistance program maximum excludable amount increased to $14,440.
  • Adoption tax credit is increased to $14,440.
  • Education assistance limit is unchanged at $5,250.
  • HSA limits for 2021 were released in May. Limits increased except catch-up contribution.

IRS announcement of Health & Welfare limits: https://www.irs.gov/pub/irs-drop/rp-20-45.pdf



Some of the most notable 2021 retirement and pension plan limitations are:

  • 401(k) / 403(b) / 457 Contributions – unchanged at $19,500.
  • 401(k) / 403(b) / 457 Catch-up Contributions – unchanged at $6,500.
  • Compensation Limit – increased to $290,000.
  • Defined Contribution Maximum Annual Contribution Limit – increased to $58,000.
  • Defined Benefit Maximum Annual Benefit Limit – unchanged at $230,000.
  • Highly Compensated Employees’ Compensation Limit – unchanged at $130,000.
  • Key Employee Officer Compensation Limit – unchanged at $185,000.

IRS announcement of Retirement limits: https://www.irs.gov/pub/irs-drop/n-20-79.pdf


Please feel free to contact us if you have any questions about any of the new Cost-of-Living Adjustments or Plan Limitations.


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