2021 contribution and deduction limits

Traditional IRA

Deadline to make a contribution for 2021 tax year is April 15, 2022

 

If neither you nor your spouse is covered by an employer plan, such as a 401(k) or 403(b)

Tax filing status Modified Adjusted Gross Income (MAGI) Maximum contribution amount Amount you may deduct from taxes
< Age 50 Age 50+
Any filing status Any income level $6,000 $7,000  $6,000 ($7,000 for age 50+)

If you are covered by an employer plan, such as a 401(k) or 403(b)

Tax filing status Modified Adjusted Gross Income (MAGI) Maximum contribution amount Amount you may deduct from taxes
< Age 50 Age 50+
Single or head of household $66,000 $6,000 $7,000  $6,000 ($7,000 for age 50+)
$66,001-$75,999 Partial deduction*
> $76,000 $0
Married filing jointly or qualifying widow(er) < $105,000 $6,000 $7,000 $6,000 ($7,000 for age 50+)
$105,001-$124,999 Partial deduction*
> $125,000 $0
Married filing separately < $9,999 $6,000 $7,000 Partial deduction*
> $10,000 $0

If your spouse is covered by an employer plan, such as a 401(k) or 403(b)

Tax filing status Modified Adjusted Gross Income (MAGI) Maximum contribution amount Amount you may deduct from taxes
< Age 50 Age 50+
Married filing jointly < $198,000 $6,000 $7,000 $6,000 ($7,000 for age 50+)
$198,001-$207,999 Partial deduction*
> $208,000 $0
Married filing separately < $9,999 $6,000 $7,000 Partial deduction*
> $10,000  $0

Next Steps

Make a contribution to an existing Traditional IRA.

*Use the IRA Selector tool to help determine this amount. This tool may also help you decide between a Traditional and Roth IRA.

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Roth IRA

Deadline to make a contribution for 2021 tax year is April 15, 2022

Tax filing status Modified Adjusted Gross Income (MAGI) Maximum contribution amount
< Age 50 Age 50+
Single or head of household < $125,000 $6,000  $7,000
$125,001-$139,999 Partial amount*
> $140,000 $0
Married filing jointly or qualifying widow(er) < $198,000 $6,000 $7,000 
$198,001-$207,999 Partial amount*
> $208,000 $0
Married filing separately < $9,999 Partial amount*
> $10,000  $0

Next Steps

Make a contribution to an existing Roth IRA.

*Use the IRA Selector tool to help determine this amount. This tool may also help you decide between a Traditional and Roth IRA.

Get up to $3,000 (plus $0 commissions as always)1 Learn how

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Use code: BONUS21

Small Business Plans

SEP IRA

Maximum contribution limit Plan establishment deadline Contribution deadline
25% of compensation, up to $57,000 in 2020 ($58,000 in 2021) Business tax filing deadline, plus extensions Business tax filing deadline, plus extensions

Profit-Sharing or Money Purchase Plan

Maximum contribution limit Plan establishment deadline Contribution deadline
25% of compensation, up to $57,000 in 2020 ($58,000 in 2021) December 31 Business tax filing deadline, plus extensions

SIMPLE IRA

Age Maximum contribution limit Plan establishment deadline Contribution deadline
  Employee Employer   Employee Employer
< Age 50 $13,500 3% of employee compensation,
up to $13,500 (matching)
October 1 January 30 Business tax filing deadline,
plus extensions
Age 50+ $16,500 3% of employee compensation,
up to $16,500 (matching)
Any age   2% of employee compensation,
up to $5,700 in 2020 ($5,800 in 2021) (non-elective)

Individual and Roth Individual 401(k)

Age Maximum contribution limit Plan establishment deadline Contribution deadline
  Employee Employer   Employee Employer
< Age 50 $19,500 25% of compensation,
up to $57,000 in 2020 ($58,000 in 2021)
December 31 January 15 Business tax filing deadline,
plus extensions
Age 50+ $26,000 25% of compensation,
up to $63,500 in 2020 ($64,500 in 2021)

Next Steps

Make a contribution to an existing small business retirement account.

Not sure which retirement plan may be right for your business? Use the Small Business Selector tool.

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Coverdell ESA

Deadline to make a contribution for 2021 tax year is April 15, 2022; no extensions

Tax filing status Modified Adjusted Gross Income (MAGI) Maximum contribution amount
Single < $95,000 $2,000
$95,001–$109,999 Partial amount
> $110,000 $0
Married filing jointly < $190,000 $2,000
$190,001–$219,999 Partial amount
> $220,000 $0

Next Steps

Learn more about a Coverdell ESA.

Make a contribution to an existing Coverdell ESA.

Get up to $3,000 (plus $0 commissions as always)1 Learn how

Take charge of your finances with a new E*TRADE brokerage or retirement account by August 31
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Use code: BONUS21