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2021 Limits for IRAs, 401(k)s and More

2021 Limits for IRAs, 401(k)s and More

| November 23, 2020

On October 26, the Treasury Department released the 2021 adjusted figures for retirement account savings. Although these adjustments won’t bring any major changes, there are some minor elements to note.

401(k)s
The salary deferral amount for 401(k)s remains the same at $19,500, while the catch-up amount of $6,500 also remains unchanged. However, the overall limit for these plans will increase from $57,000 to $58,000 in 2021.1

Individual Retirement Accounts (IRA)
The limit on annual contributions remains at $6,000 for 2021, and the catch-up contribution limit is also unchanged at $1,000.2

Roth IRA
Roth IRA account holders will experience some slightly beneficial changes. In 2021, the Adjusted Gross Income (AGI) phase-out range will be $198,000 to $208,000 for couples filing jointly. This will be an increase from the 2020 range of $196,000 to $206,000. For those who file as single or as head of household, the income phase-out range has also increased. The new range for 2021 will be $125,000 to $140,000, up from the current range of $124,000 to $139,000.3

Although these modest increases won’t impact many, it’s natural to have questions anytime the financial landscape changes. If you’re curious about any of the above, give me a call at the number below for more information.

If you have accumulated a substantial sum in your tax deferred retirement account, and you want to leave that money to your family without losing up to 50% in taxes, watch this video to learn how you can convert any IRA, 401k or 403b account into a tax free bequest or inheritance.

Click Here to Watch it Now: https://financialsecurity.video/anbouCuekkD



After you watch the video contact me and let's schedule a consultation in person or virtually.

For personal consultations we strictly enforce COVID-19 safety protocols on our part to protect you and your team.

Contact us now and let's have a conversation.

Warmest Regards,

Jim Griffith

CEO

Griffith Financial Services

1. IRS.gov, October 26, 2020
2. IRS.gov, October 26, 2020
3. IRS.gov, October 26, 2020

The content is developed from sources believed to be providing accurate information. The information in this material is not intended as tax or legal advice. Please consult legal or tax professionals for specific information regarding your individual situation. This material was developed and produced by FMG Suite to provide information on a topic that may be of interest. FMG Suite, LLC, is not affiliated with the named representative, broker-dealer, state- or SEC-registered investment advisory firm. The opinions expressed and material provided are for general information and should not be considered a solicitation for the purchase or sale of any security.