Check our blog for updates on regulations or resources that can be used to help you and your business achieve your financial goals.
Some of the retirement contribution limits for 2021 have increased while others have remained the same. Here is a quick summary of the contribution limits for 2021.
- 401(k), 403(b), most 457 Plans, and Thrift Savings Plans - $19,500 | Catch-up* - $6,500
- Solo 401(k) - $58,000 | Catch-up* - $6,500
- SEP IRA - $58,000
- SIMPLE IRA - $13,500 | Catch-up* - $3,000
- Individual Retirement Accounts (IRA) - $6,000 | Catch-up* - $1,000
- Roth IRA - $6,000 | Catch-up* - $1,000
*Catch-up contributions apply to individuals age 50 or older, even if you turn 50 on December 31, 2021
If you earn too much to contribute to a Roth IRA due to the IRS phase out rules, you can make a non-deductible IRA contribution and convert it to a Roth IRA as congress lifted any income restrictions for Roth IRA conversions. To learn more about the “backdoor Roth”, please contact our office.
As a reminder, the passage of the SECURE Act which was signed into law on December 20, 2019, eliminated the maximum age for Traditional IRA contributions (previously, there was a restriction at the age of 70 1/2).