A Look at the 2021 IRA Contribution Limits (updated for 2021)

Contribution limits for self-directed IRAs largely remain the same for 2021 as they were for 2020. As of 2020 and now through 2020, annual contribution limits are at $6,000 for savers under 50, and an annual contribution of $7,000 for those 50 or over.

It’s important to note that these limits apply across all IRA accounts, so if you’re contributing to multiple accounts, that $6,000-$7,000 limit will apply across all accounts.

Income Range Eligibility

For those covered by a workplace retirement plan like a 401K, the income ranges for IRA deduction phaseouts also changed for 2021

Here are the traditional IRA phase-out ranges for 2021:

  • $66,000 to $76,000 – Single taxpayers covered by a workplace retirement plan.
  • $105,000 to $125,000 – Married couples filing jointly. This applies when the spouse making the IRA contribution is covered by a workplace retirement plan.
  • $198,000 to $208,000 – A taxpayer not covered by a workplace retirement plan married to someone who’s covered.
  • $0 to $10,000 – Married filing a separate return. This applies to taxpayers covered by a workplace retirement plan.

Here are the income phase-out ranges for taxpayers making contributions to a Roth IRA:

  • $125,000 to $140,000 – Single taxpayers and heads of household.
  • $198,000 to $208,000 – Married, filing jointly.
  • $0 to $10,000 – Married, filing separately.

Each year, the IRS assesses contribution limits for pension plans and retirement saving accounts to accommodate for cost of living adjustments. Last year, the IRS made no significant adjustments to either 401K or IRA contribution limits.