2021 Updated Retirement Account Contribution Limits

Every year, contribution limits get updated and it’s good to keep an eye on this to maximize your retirement accounts and update your contributions if needed. Here’s a summary of the updated limits in 2021:

IRA’s and Roth IRA’s : $6,000 with a $1,000 catch up for those over 50 years old.

401(k)’s: $19,500 with a $6,500 catch up contribution for those over 50 years old.

SEP IRA and Solo 401(k)’s: $58,000

SIMPLE IRA’s: $13,500 with a $3,000 catch up contribution for those over 50 years old.

Also to note, several retirement accounts above including Roth IRA’s and Traditional IRA’s feature income phase out limits. Depending on your income, your marital status, and if you have any employer sponsored retirement accounts, you may or may not be eligible to contribute. These income phase out limits are also updated for 2021. There is an array of potential scenarios when it comes to income phase outs, and Synergy Wealth Management can help you navigate those.