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

Retegy Team
Retegy Team

November 1, 2020

Numbers to know for the new year.
401k IRA Savings

On October 26, the Treasury Department released the 2021 adjusted figures for retirement account savings. Although these adjustments won’t bring any major changes, there are some minor elements to note.

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 IRAs. 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

Although these modest increases won’t impact many, it’s natural to have questions anytime the financial landscape changes. If you’re curious about any of the above, speak to your financial or tax professional for more information.


Retegy Team

November 1, 2020

Share:

This material was prepared by MarketingPro, Inc., and does not necessarily represent the views of the presenting party, nor their affiliates. This information has been derived from sources believed to be accurate. Please note - investing involves risk, and past performance is no guarantee of future results. The publisher is not engaged in rendering legal, accounting or other professional services. If assistance is needed, the reader is advised to engage the services of a competent professional. This information should not be construed as investment, tax or legal advice and may not be relied on for the purpose of avoiding any Federal tax penalty. This is neither a solicitation nor recommendation to purchase or sell any investment or insurance product or service, and should not be relied upon as such. All indices are unmanaged and are not illustrative of any particular investment.

Citations.

1. IRS.gov, October 26, 2020

2. IRS.gov, October 26, 2020

3. IRS.gov, October 26, 2020

Recent updates
...

New Year, New Rules

Vladimir Kouznetsov, EA, CFP® - Jan 8, 2024
Read More
...

Navigating "Five-Year Rules" of Roth Accounts

Vladimir Kouznetsov, EA, CFP® - Oct 26, 2023
Read More
...

Understanding the Ins and Outs of Workplace 401(k) Plans

Vladimir Kouznetsov, EA, CFP® - Jul 28, 2023
Read More
...

Managing Debt: Effective Strategies

Vladimir Kouznetsov, EA, CFP® - Jul 25, 2023
Read More
...

Top Financial Mistakes to Avoid

Vladimir Kouznetsov, EA, CFP® - Jul 14, 2023
Read More

Copyright © 2023 Retegy LLC. All rights reserved.

Vladimir Kouznetsov, EA, CFP® is an investment advisor representative at Retegy LLC.
Retegy LLC is a registered investment advisor offering advisory services in the State of California, Washington, and other jurisdictions where exempted. Registration does not imply a certain level of skill or training. The presence of this website on the Internet shall not be directly or indirectly interpreted as a solicitation of investment advisory services to persons of another jurisdiction unless otherwise permitted by statute. Follow-up or individualized responses to consumers in a particular state by Retegy LLC in the rendering of personalized investment advice for compensation shall not be made without our first complying with jurisdiction requirements or under an applicable state exemption.
The information on this site is provided “AS IS” and without warranties of any kind either express or implied. To the fullest extent permissible under applicable laws, Retegy LLC disclaims all warranties, express or implied, including, but not limited to, implied warranties of merchantability, non-infringement, and suitability for a particular purpose. Retegy LLC does not warrant that the information will be free from error. None of the information provided on this website is intended as investment, tax, accounting or legal advice, as an offer or solicitation of an offer to buy or sell, or as an endorsement of any company, security, fund, or other securities or non-securities offering. The information should not be relied upon for purposes of transacting securities or other investments. Your use of the information is at your sole risk. Under no circumstances shall Retegy LLC be liable for any direct, indirect, special or consequential damages that result from the use of, or the inability to use, the materials in this site, even if Retegy LLC or a Retegy LLC authorized representative has been advised of the possibility of such damages. In no event shall Retegy LLC have any liability to you for damages, losses, and causes of action for accessing this site. Information on this website should not be considered a solicitation to buy, an offer to sell, or a recommendation of any security in any jurisdiction where such offer, solicitation, or recommendation would be unlawful or unauthorized.
ADA Compliance Policy: Retegy LLC is committed to keeping our site compliant with the Americans with Disabilities Act. We welcome feedback on how to improve our site to make it accessible to everyone.