Traditional and Roth IRA contribution limits for 2021
IRA contribution limits for traditional and Roth accounts in 2021 will be the same as 2020's. If you're under 50, you can put in up to $6,000 in 2021. If you're 50 or older, you get a $1,000 catch-up that raises this limit to $7,000.
That said, the income limits for contributing to a Roth IRA are increasing from 2020. In 2020, direct Roth IRA contributions were barred for:
- Single tax filers and heads of household earning over $139,000.
- Joint filers earning over $206,000.
- Married couples filing separately earning over $10,000.
In 2021, these thresholds are:
- $140,000 for single tax filers and heads of households.
- $208,000 for married couples filing jointly.
- $10,000 for married couples filing separately (unchanged from 2020).
Employees can contribute up to $19,500 to their 401(k) plan for 2020 and 2021.
Anyone age 50 or over is eligible for an additional catch-up contribution of $6,500 in 2020 and 2021
This information is provided as general guidance. Please consult your tax adviser for information related to your own personal circumstance.