The Internal Revenue Service has confirmed the 2021 tax year limits that impact retirement plans and pertain to voluntary retirement savings plans:
- $19,500 maximum contribution allowed to a 403b voluntary savings plan TSA (Tax Sheltered Annuity), available to all employees
- $19,500 maximum contribution allowed to a 457 voluntary savings plan (Texa$aver), available to benefit-eligible employees
- $6,500 additional catchup for participants who are over 50 years of age (for both the 403b TSA AND the 457 Texa$aver plan, for a combined limit of $26,000 to the 403b and $26,000 to the 457 in tax year 2021)
- $58,000 annual limit for all contributions to 403b plans (your Optional Retirement Plan/ORP and your 403b voluntary savings plan combined)
- $290,000 annual salary cap. Earnings over $290,000 will not be included in retirement account for non-grandfathered ORP participants and TRS participants
Not participating in the voluntary retirement savings plans? Learn more about these great ways to tax-shelter retirement income via easy monthly payroll deduction here. Questions? Please contact us at HRBenefits@untsystem.edu, and we’ll be glad to help. And, we can help calculate your maximum contribution upon request.