Retirement Plan
Contribution Limits

HOW MUCH CAN YOU PUT INTO YOUR SAVINGS PLAN?


Each year the Treasury Department announces how much you are allowed to put into your retirement savings accounts. Some years the amount remains flat while other years you will see an increase in the contribution limit.

2021 Tax Year Summary

Here is an overview of the changes for 2021. You can download the flyers below for detailed information on all retirement plan types.

Retirement plan contribution limits remained flat for the most part from 2020 to the 2021 limits announced. The overall contribution limit on 401(k)s and SEP plans did see an increase from $57,000 to $58,000 for 2021. The compensation limit for these plan types also went up allowing employers to increase how much they can contribute.

Roth IRA adjusted gross incomes (AGI) phase-out limits were increased. For individuals, the phase-out range increased to $125,000 – $140,000 from the 2020 range of $124,000 – $139,000. The amount for married couples filing jointly went up to $198,000 – $208,000 from the 2020 limit of $196,000 – $206,000.

The income limits to claim the saver’s credit has gone up. The new limit for married couples filing jointly is $66,000 for 2021 up from $65,000. The limit for the heads of households is now $49,500 and for singles it is $33,000. This allows low- and moderate-income workers to apply for a tax credit for their eligible contributions to their retirement plan. READ MORE

ACCOUNT TYPE 2020 PLAN CONTRIBUTION LIMIT 2021 PLAN CONTRIBUTION LIMIT
IRA $6,000 Over 50 Additional Catch-Up Contribution Allowed: $1,000 $6,000 Over 50 Additional Catch-Up Contribution Allowed: $1,000
ROTH IRA $6,000 Over 50 Additional Catch-Up Contribution Allowed: $1,000 INCOME LIMITS: SINGLE: AGI phase-out $124,000 ? $139,000 MARRIED filing jointly: AGI phase-out $196,000 ? $206,000 $6,000 Over 50 Additional Catch-Up Contribution Allowed: $1,000 INCOME LIMITS: SINGLE: AGI phase-out $125,000 ? 140,000 MARRIED filing jointly: AGI phase-out $198,000 ? $208,000
403(b) $19,500 Over 50 Additional Catch-Up Contribution Allowed: $6,500 $19,500 Over 50 Additional Catch-Up Contribution Allowed: $6,500
457 $19,500 Over 50 Additional Catch-Up Contribution Allowed: $6,500 $19,500 Over 50 Additional Catch-Up Contribution Allowed: $6,500
401(k) $19,500 Over 50 Additional Catch-Up Contribution Allowed: $6,500 $19,500 Over 50 Additional Catch-Up Contribution Allowed: $6,500