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2021 Cost-of-Living Adjustments (COLAS)
October 29, 2020
Tax Advisor
This week, the IRS announced the 2021 cost-of-living adjustments (COLAs), which impact retirement plans for more than 67 million Americans. In addition, the Social Security Administration announced the 2021 social security wage base will be $142,800, which reflects a 3.7% increase from 2020.
While most of the 2021 limitations stayed the same as 2020, a few of them increased. We’ve compiled a side-by-side comparison of the dollar limitations for benefits and contributions over the past three years.
click image to view comparison
Contact your BMF Advisor if you have questions on these dollar limitations or to discuss your tax planning strategy.
