Saving for Retirement: How Much Can You Contribute in 2021?

With the new year comes information from the IRS on how much you can add to your tax-advantaged retirement plans and related issues. The new annual limits for some major vehicles are spelled out in the table below.
Catch-Up: $1K if 50 or older
Catch-Up: $1K
Same
Married:3 >$208K
<$206K
Single: No limit
Married: Phase-out at >$198K - ≥$208K
Covered By Plan at Work:
Single: Phase-out at >$66K - ≥$76K
Married: Phase-out at >$104K - ≥$124K
No limit
Phase-out at $196K - ≥$206K
Phase-out at >$65K - ≥$75K
Phase-out at >$104K - ≥$124K
Catch-Up: $6.5K
Same
Catch-Up: None
None
Catch-Up: $6.5K
Same
Catch-Up: $3K
Same
Single: $33K
Married: $66K
$1K
$2K
$32.5K
$66K
Same
Same
You should consult your financial and tax advisors about any retirement strategies.1 It’s always a good time to plan for retirement. If you’d like any help, we’re here for you.
1 Defined-benefit plans are not covered in the table above
2 Modified Adjusted Gross Income: AGI with certain items, including tax-free interest, added back
3 Throughout this table, “Married” assumes filing tax returns jointly
4 Lesser of that amount or certain percentages of business revenue; also applies to 2020 and to the limits for both years in Solo 401(k)s
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People's United Bank, N.A. merged into M&T Bank. It is now People's United, a Division of M&T Bank. Although account documentation or other materials may continue to reflect the People's United Bank, N.A. name or logo, new wealth management accounts opened on or after that date will be opened with M&T Bank or it's People's United Advisors Inc. or Wilmington Trust, N.A. affiliates. For more information please go to www.wilmingtontrust.com, reach out to your relationship manager or refer to your account agreement(s).
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On April 2, 2022, People’s United Bank, N.A. merged into M&T Bank. It is now part of M&T Bank and its former branches and most services will operate as the People’s United division of M&T Bank until we complete the integration of our systems later in 2022. M&T Bank is a Member FDIC, Equal Housing Lender and Equal Opportunity Lender.