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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Disclosure
Investment products are offered through People’s United Advisors, Inc., a registered investment advisor. People’s United Advisors, Inc. is a wholly-owned subsidiary of People’s United Bank, N.A.
Investment Products are:
• Not Insured by FDIC or any Federal Government Agency
• Not a Deposit of or Guaranteed by a Bank or any Bank Affiliate
• May Lose Value
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PUA is not soliciting any action based on this material. It is for general informational purposes only. It does not constitute a personal recommendation or take into account the particular investment objectives, financial situations, or needs of individual investors.
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