Stay Informed: IRS Limits
Find out how much you can save for retirement.
Review the IRS limits for 2021
The IRS has announced the 2021 contribution limits for retirement savings accounts, including contribution limits for 401(k), 403(b), and most 457 plans, as well as income limits for IRA contribution deductibility. Contribution limits for Health Savings Accounts (HSAs) have also been announced. Please review an overview of the limits below.
Contribution limits for 401(k), 403(b), and most 457 plans
| 2020 | 2021 | |
| Employee pre-tax and Roth contributions1 [Age 49 and under] | $19,500 | $19,500 |
| Employee after-tax contributions and any company contributions2 | $37,500 | $38,500 |
| Maximum annual contributions allowed3 [Age 49 and under] | $57,000 | $58,000 |
| Additional employee pre-tax and Roth contributions1 [Age 50 and older] | $6,500 | $6,500 |
| Maximum annual contributions allowed3 [Age 50 and older] | $63,500 | $64,500 |
1. If you have contributed to more than one qualified retirement plan during the calendar year, it is your responsibility to ensure that you have not exceeded these limits.
2. Company contributions include any employer matching, profit-sharing, and non-elective contributions.
3. Amount typically not to exceed the lesser 100% of your compensation or this number. Your employer's retirement plan might limit the compensation to something less than 100%; please refer to your plan's Summary Plan Description or plan document for other applicable limits.
The annual compensation limit is $290,000. You can make contributions up to the IRS contribution limits noted above up to $290,000.
Roth IRA and Traditional IRA contribution limits
| 2020 | 2021 | |
| Age 49 and under | Up to $6,000 (must have employment compensation) | Up to $6,000 (must have employment compensation) |
| Age 50 and older | Additional $1,000 | Additional $1,000 |
Traditional IRA modified adjusted gross income limit for partial deductibility
| 2020 | 2021 | |
| Single | $65,000 - $75,000 | $66,000 - $76,000 |
| Married - Filing joint returns | $104,000 - $124,000 | $105,000 - $125,000 |
| Married - Filing separately | $0 - $10,000 | $0 - $10,000 |
| Non-active participant spouse | $196,000 - $206,000 | $198,000 - $208,000 |
Roth IRA modified adjusted gross income phase-out ranges*
| 2020 | 2021 | |
| Single | $124,000 - $139,000 | $125,000 - $140,000 |
| Married - Filing joint returns | $196,000 - $206,000 | $198,000 - $208,000 |
| Married - Filing separately | $0 - $10,000 | $0 - $10,000 |
*As of 2010, there is no income limit for taxpayers who wish to convert a traditional IRA to a Roth IRA.
Health Savings Account (HSA) contribution limits
| 2019 | 2020 | 2021 | |
| Individual (employer + employee) | $3,500 | $3,550 | $3,600 |
| Family (employer + employee) | $7,000 | $7,100 | $7,200 |
| Age 55 or older** | Additional $1,000 | Additional $1,000 | Additional $1,000 |
**Catch-up contributions can be made any time during the year in which the HSA participant turns 55.
Make the most of your savings
If you are not saving to the max in your workplace savings plan today, consider increasing your contribution in 2021 to the IRS limit of $19,500 to help reach your retirement savings goals.
Visit the contribution page on NetBenefits to review your current contribution rate and update it if necessary.