Due to low inflation, cost-of-living adjustments to various retirement plan limits are unchanged or only slightly higher (Notice 2020-79). The following are some key numbers to help you plan for the coming year:
The adjusted gross income limits for the retirement savers credit are slightly increased. Also slightly increased are the modified adjusted gross income limits for Roth IRA contributions and for contributions to traditional IRAs by those who are active participants in qualified retirement plans.
A written determination issued to a taxpayer by the IRS that interprets and applies the tax laws to the taxpayer’s specific set of facts. A letter ruling advises the taxpayer regarding the tax treatment that can be expected from the IRS in the circumstances specified by the ruling. It may not be used or cited as precedent by another taxpayer.