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IRS.gov Retirement Topics – IRA Contribution Limits
The IRS has published maximum IRA contribution limits and catch-up provisions for 2020 and 2021. (Summaries for each account type are listed in the tables below.)
October 26, 2020, WASHINGTON — IR-2020-244, The Internal Revenue Service announced cost of living adjustments affecting dollar limitations for pension plans and other retirement-related items for tax year 2021 in Notice 2020-79, posted today on IRS.gov. (2021 IRA limit remains unchanged at $6,000)
November 6, 2019, WASHINGTON — IR-2019-179, Increase in 2020 eligibility income ranges for deductible contributions to traditional and Roth IRAs.(2020 IRA limit remains unchanged at $6,000)
November 1, 2018, WASHINGTON — IR-2018-211, IRA limit increases to $6,000
2020 | 2021 Contribution Limit Summaries by Account Type
Traditional & Roth IRA Contributions and Catch Up Provisions
Plan Name
Standard Limit
Catch-up Limit (Age 50 and older)
Traditional
$6,000
$7,000
Roth3
$6,000
$7,000
3Modified AGI Limits: 2020 Single: $124,000 – $139,000 Married Filing Jointly: $196,000 – $206,000 2020 Traditional & Roth IRA Contribution Deadline is 4/15/2021.
2021 Traditional & Roth IRA Contribution Limits
Traditional & Roth IRA Contributions and Catch Up Provisions
Plan Name
Standard Limit
Catch-up Limit (Age 50 and older)
Traditional
$6,000
$7,000
Roth3
$6,000
$7,000
3Modified AGI Limits: 2021 Single: $125,000 – $140,000 Married Filing Jointly: $198,000 – $208,000 2021 Traditional & Roth IRA Contribution Deadline is 4/15/2022.
2020/2021 – SEP IRA Contribution Limits
Simplified Employee Pension (SEP) IRA Contribution Limits
Year
Max Dollar Allocation
Max Considered Compensation
2020
$57,000
$285,000
2021
$58,000
$290,000
The maximum amount that can be contributed to a simplified pension plan (SEP) is 25% of an employee’s compensation, which is capped at a maximum as indicated above.
2020 SEP IRA Contribution Deadline is 4/15/2021. 2021 SEP IRA Contribution Deadline is 4/15/2022.
2020/2021 – SIMPLE IRA Contribution Limits
Savings Incentive Match Plan for Employees (SIMPLE) IRA Contributions and Catch Up Provisions
Year
Standard Limit
Catch-up Limit (Age 50 and older )
2020
$13,500
$16,500
2021
$13,500
$16,500
Employers are generally required to match each employee’s salary reduction contributions, on a dollar-for-dollar basis, up to 3% of the employee’s compensation.
2020 SIMPLE IRA Contribution Deadline for Employees is 12/31/2020. 2020 SIMPLE IRA Contribution Deadline for Employers is 4/15/2021.
2021 SIMPLE IRA Contribution Deadline for Employees is 12/31/2021. 2021 SIMPLE IRA Contribution Deadline for Employers is 4/15/2022.
2020/2021 – 401(k) and Solo(k) Contribution Limits
