As part of your 2021 tax planning, now is the time to review funding your retirement accounts. By establishing your contribution goals at the beginning of each year, the financial impact of saving for your future should be more manageable. Here are annual contribution limits for 2021:

Plan20202021Change
SIMPLE
IRA
Annual Contribution
50 or over catch-up
$13,500
Add $3,000
$13,500
Add $3,000
No Change
No Change
401(k), 403(b),
457 and
SARSEP
Annual Contribution
50 or over catch-up
$19,500
Add $6,500
$19,500
Add $6,500
No Change
No Change
Traditional
IRA
Annual Contribution
50 or over catch-up
$6,000
Add $1,000
$6,000
Add $1,000
No Change
No Change
AGI Deduction Phaseouts:Single; Head of Household
Joint nonparticipating spouse
Joint participating spouse
Married Filing Separately
(any spouse participating)
65,000 – 75,000
196,000 – 206,000
104,000 – 124,000
0 – 10,000
66,000 – 76,000
198,000 – 208,000
105,000 – 125,000
0 – 10,000
+ $1,000
+ $2,000
+ $1,000
No Change
Roth
IRA
Annual Contribution
50 or over catch-up
$6,000
Add $1,000
$6,000
Add $1,000
No Change
No Change
Contribution
Eligibility
Single; Head of Household
Married Filing Jointly
Married Filing Separately
124,000 – 139,000
196,000 – 206,000
0 – 10,000
125,000 – 140,000
198,000 – 208,000
0 – 10,000
+ $1,000
+ $2,000
0 – 10,000
Rollover to Roth EligibilityJoint, Single, or Head of Household
Married Filing Separately
No AGI Limit
Allowed / No AGI Limit
No AGI Limit
Allowed / No AGI Limit
No AGI Limit
Allowed / No AGI Limit

Take action

If you have not already done so, please consider:

  • Reviewing and adjusting your periodic contributions to your retirement savings accounts to take full advantage of the tax advantaged limits
  • Setting up new accounts for a spouse or dependent(s)
  • Using this time to review the status of your retirement plan
  • Reviewing contributions to other tax-advantaged plans including flexible spending accounts and health savings accounts