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Annual Tax Limits Announced for Retirement and Savings Plans

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, and we’ll be glad to help. And, we can help calculate your maximum contribution upon request.