2021 Retirement Plan Limitations

401(k) and 403(b) Contributions (elective deferrals): No change; Employee contribution limit increased to $19,500, plus $6,500 catch-up contribution if aged 50 and over. (There is no change to the catch-up amount.)

401(k) and 403(b) Contributions (employee + employer): Increased to $58,000 (up from $57,000)

401(k) and 403(b) Annual Compensation Limit: Increased to $290,000 (up from $285,000)

Traditional IRA and Roth IRA Contributions: No change; remains at $6,000, plus a $1,000 catch-up contribution if aged 50 and over.

SIMPLE IRA Contributions: No change; remains $13,500.

Traditional IRA (if also covered by an employer retirement plan) Income Phaseout ranges:

• Single taxpayers at $66,000 to $76,000 (up from $65,000 to $75,000) if individual is also covered under an employer retirement plan

• Married taxpayers filing jointly at $105,000 to $125,000 (up from $104,000 to $124,000) and applies if the contributor is also the one covered under employer retirement plan

• Married taxpayers filing jointly at $198,000 to $208,000 (up from $196,000 to $206,000) and applies if the contributor is not covered under an employer retirement plan, but the spouse is covered under a plan

Roth IRA Income Phaseout Ranges:

• Single taxpayers at $125,000 to $140,000 (up from $124,000 to $139,000)

• Married taxpayers filing jointly at $198,000 to $208,000 (up from $196,000 to $206,000)

Saver’s Credit (Retirement Savings Contributions Credit) Adjusted Gross Income Limits:

• Single taxpayers at $33,000 (up from $32,500)

• Married taxpayers filing jointly at $66,000 (up from $65,000)

More details available with IRS Notice 2020-79 on the IRS website.