November 3, 2020 10:56 pm

Retirement Plan Limits for 2021

Due to low inflation, cost-of-living adjustments to various retirement plan limits are unchanged or only slightly higher (Notice 2020-79). The following are some key numbers to help you plan for the coming year:

  • 401(k) contribution limit: $19,500, plus $6,500 for those 50 and older by the end of the year (unchanged)
  • SIMPLE-IRA contribution limit: $13,500, plus $3,000 for those 50 and older by the end of the year (unchanged)
  • IRA/Roth IRA contribution limit: $6,000, plus $1,000 for those 50 and older by the end of the year (unchanged)

The adjusted gross income limits for the retirement savers credit are slightly increased. Also slightly increased are the modified adjusted gross income limits for Roth IRA contributions and for contributions to traditional IRAs by those who are active participants in qualified retirement plans.

advertisement
Tax Glossary

Tax home

The area of your principal place of business or employment. You must be away from your tax home on a business trip to deduct travel expenses.

More terms