2021 Limits for IRAs, 401(k)s and More

R. Bryan Sedway, CLU, ChFC, CAP

August 10, 2021

It's always good to know your limits, especially when maximizing your retirement savings.

401(k)s
The salary deferral amount for 401(k)s remains the same at $19,500, while the catch-up amount of $6,500 also remains unchanged. However, the overall limit for these plans will increase from $57,000 to $58,000 in 2021.¹

Individual Retirement Accounts (IRA)
The limit on annual contributions remains at $6,000 for 2021, and the catch-up contribution limit is also unchanged at $1,000.²

Roth IRA
Roth IRA account holders will experience some slightly beneficial changes. In 2021, the Adjusted Gross Income (AGI) phase-out range will be $198,000 to $208,000 for couples filing jointly. This will be an increase from the 2020 range of $196,000 to $206,000. For those who file as single or as head of household, the income phase-out range has also increased. The new range for 2021 will be $125,000 to $140,000, up from the current range of $124,000 to $139,000.³

The Power of Tax Deferred Growth

Why are 401(k) plans, annuities, and IRAs so popular?

Although these modest increases won’t impact many, it’s natural to have questions anytime the financial landscape changes.

We are always here to help. If you have questions or concerns please go to Schedule an Appointment or call 916-833-6100.

We seek to provide you with the clarity, confidence, commitment, and choices to achieve your financial goals, giving you a newfound understanding of just how much is possible.

^{1. IRS.gov, October 26, 2020}
^{2. IRS.gov, October 26, 2020}
^{3. IRS.gov, October 26, 2020}

^{The content is developed from sources believed to be providing accurate information. The information in this material is not intended as tax or legal advice. Please consult legal or tax professionals for specific information regarding your individual situation. This material was developed and produced by FMG Suite to provide information on a topic that may be of interest. FMG Suite, LLC, is not affiliated with the named representative, broker-dealer, state- or SEC-registered investment advisory firm. The opinions expressed and material provided are for general information and should not be considered a solicitation for the purchase or sale of any security.}