New 401(k) Rules for 2021, Including Thrift Savings Plan
A 401(k) is a fabulous tool for savvy retirement savers, and it’s a great idea to get a jump on your retirement contributions early in the new year. With the beginning of 2021 comes a fresh start on a lot of financial things, so be sure you know the 401(k) rules for 2021 in order to make your plans.
A lot about your 401(k) doesn’t have to change at all in 2021, while a few other aspects will adjust somewhat. Know what the rules are regarding 401(k)s for 2021. That will help you plan ahead and figure out the best game plan for your retirement savings.
401(k) Contribution Limits for 2021
The total amount an individual can contribute to their 401(k) in the new year is the same as for 2020. You can put up to $19,500 of your income into a 401(k) account in 2021.
You’d have to save $1,625 each month to be able to reach the maximum contribution amount. In addition, the same goes for most of the retirement plans that are similar to a 401(k). Your 403(b) account, most 457 accounts, and the federal government’s Thrift Savings Plan (TSP) are included. They all come with $19,500 max contribution per person. Please click HERE to learn more.
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