The IRA and 401K Contribution Limits have been recently released by the Internal Revenue Service (IRS) for the 2021 calendar year.

401K Contribution Limits for 2021

• Limit of contribution (by individual or by employee) is unchanged  = $19,500

• Catch-up contribution (for individuals/employees aged 50 and over) =  $500

IRA Contribution Limits for 2021

• Limit on annual contributions to an IRA = $6,000

• Additional catch-up contribution limit (for individuals/employees aged 50 and over, not subject to an annual cost-of-living adjustment) = $1,000

IRA Eligibility Changes for 2021

• For single taxpayers covered by a workplace retirement plan, the phase-out range = $66,000 to $76,000, up from $65,000 to $75,000.

• For married couples filing jointly, where the spouse making the IRA contribution is covered by a workplace retirement plan, the phase-out range = $105,000 to $125,000, up from $104,000 to $124,000.

• For an IRA contributor who is not covered by a workplace retirement plan and is married to someone who is covered, the deduction is phased out if the couple’s income = $198,000 and $208,000, up from $196,000 and $206,000.

• For a married individual filing a separate return who is covered by a workplace retirement plan, the phase-out range is not subject to an annual cost-of-living adjustment = $0 to $10,000.

How We Can Help

• Provide and educate you on the best retirement savings plan to assist in planning for your future today

• Ensure the savings plan options fit your budget, both now and in the future