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Some of the retirement contribution limits for 2021 have increased while others have remained the same.  Here is a quick summary of the contribution limits for 2021.

- 401(k), 403(b), most 457 Plans, and Thrift Savings Plans - $19,500 | Catch-up* - $6,500

- Solo 401(k) - $58,000 | Catch-up* - $6,500

- SEP IRA - $58,000

- SIMPLE IRA - $13,500 | Catch-up* - $3,000

- Individual Retirement Accounts (IRA) - $6,000 | Catch-up* - $1,000

- Roth IRA - $6,000 | Catch-up* - $1,000

*Catch-up contributions apply to individuals age 50 or older, even if you turn 50 on December 31, 2021

If you earn too much to contribute to a Roth IRA due to the IRS phase out rules, you can make a non-deductible IRA contribution and convert it to a Roth IRA as congress lifted any income restrictions for Roth IRA conversions. To learn more about the “backdoor Roth”, please contact our office.

As a reminder, the passage of the SECURE Act which was signed into law on December 20, 2019, eliminated the maximum age for Traditional IRA contributions (previously, there was a restriction at the age of 70 1/2).