In this article, we're going to discuss IRA contribution limits, which will include the recent changes for 2020 and 2021. We will also address two important IRA limits: one relating to household income, and a second dealing with the dollar value of the contributions themselves.
Roth IRA or 401k? This template will answer your questions.
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IRA Contributions
For many years, the contribution limit for an IRA stood at $2,000, but policymakers realized inflation made this old limit inadequate in meeting the retirement planning needs of individuals. In this article, we've updated information on the 2020 and 2021 limits. We will even discuss the catch-up limit that can help accountholders to get money into their IRA faster.
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In the sections below, we are going to separate the IRA contribution limits for Traditional IRAs, Roth IRAs, and SIMPLE IRAs as needed. If we don't specifically identify the limit or contribution rule for a particular program, then it's safe to assume the commentary applies to all three.
IRA Contribution Limits for 2020
In 2020, the contribution limits for Traditional IRAs and Roth IRAs is $6,000. Anyone reaching the age of 50 before the end of the calendar year is entitled to an additional catch-up contribution of $1,000. That brings the total contribution limit to $7,000 for anyone age 50 or older by the end of 2020.
Traditional IRA Income Limits for 2020
In 2020, the modified adjusted gross income or MAGI contribution limits for Traditional IRAs were raised. Accountholders covered by a retirement plan at work will have their tax-deductible contribution to a Traditional IRA phased-out if:
Their filing status is married filing jointly, and their AGI is more than $104,000 but less than $124,000.
Their filing status is single or head of household, and their AGI is more than $65,000 but less than $75,000.
The deductible phase-out starts at under $10,000 for taxpayers with a tax filing status of married filing separate returns.
Roth IRA Income Limits in 2020
In 2020, the following income limit rules apply to Roth IRAs:
Single filers with modified adjusted gross income up to $124,000 can make a full contribution. If their adjusted gross income is in excess of $139,000, they cannot make a contribution to a Roth IRA.
Joint filers with modified adjusted gross income up to $196,000 can make a full contribution. If their adjusted gross income is in excess of $206,000, they cannot make a contribution to a Roth IRA in 2020.
IRA Contribution Limits for 2021
In 2021, the contribution limits for Traditional IRAs and Roth IRAs is $6,000. Anyone reaching the age of 50 before the end of the calendar year is entitled to an additional catch-up contribution of $1,000. That brings the total contribution limit to $7,000 for anyone age 50 or older by the end of 2020.
Traditional IRA Income Limits for 2021
In 2021, the modified adjusted gross income or MAGI contribution limits for Traditional IRAs were raised. Accountholders covered by a retirement plan at work will have their tax-deductible contribution to a Traditional IRA phased-out if:
Their filing status is married filing jointly, and their AGI is more than $105,000 but less than $125,000.
Their filing status is single or head of household, and their AGI is more than $66,000 but less than $76,000.
The deductible phase-out starts at under $10,000 for taxpayers with a tax filing status of married filing separate returns.
Roth IRA Income Limits in 2021
In 2021, the following income limit rules apply to Roth IRAs:
Single filers with modified adjusted gross income up to $125,000 can make a full contribution. If their adjusted gross income is in excess of $140,000, they cannot make a contribution to a Roth IRA.
Joint filers with modified adjusted gross income up to $198,000 can make a full contribution. If their adjusted gross income is in excess of $208,000, they cannot make a contribution to a Roth IRA in 2021.
SIMPLE IRA Contribution Limits in 2020 and 2021
In 2020, the employer salary-reduction contribution is $13,500. For workers that are age 50 and older, their employer can make additional "catch up" contributions of $3,000, bringing the total contribution limit in 2020 for SIMPLE IRAs to $16,500. In 2021, the employer salary-reduction contribution remains at $13,500, as does the total contribution limit of $16,500.
Roth IRA or 401k? This template will answer your questions.
With this template, you will get:
All DFY, simply add your details
Charts for comparison and clear answer
Easily update for any year (2023, 2024, 2025, etc…)
Current IRA Contribution Limits
In the sections below, we have translated the above information into several tables that provide an "at a glance" look at contribution and income limits for IRAs. These tables only apply to Roth IRAs and Traditional IRAs. Most SIMPLE plans are administered by an employer and rules may vary.
Roth and Traditional IRA Contribution Limits (2006 to 2021)
Year | Standard Contribution | With Catch-Up Contribution |
2006 - 2007 | $4,000 | $5,000 |
2008 - 2012 | $5,000 | $6,000 |
2013 | $5,500 | $6,500 |
2014 | $5,500 | $6,500 |
2015 | $5,500 | $6,500 |
2016 | $5,500 | $6,500 |
2017 | $5,500 | $6,500 |
2018 | $5,500 | $6,500 |
2019 | $6,000 | $7,000 |
2020 | $6,000 | $7,000 |
2021 | $6,000 | $7,000 |
2022 | Indexed with Inflation |
2020 Traditional IRA AGI Deduction Limits
(If Covered by a Retirement Plan at Work)
Filing Status | Full Deduction | Phase-Out | No Deduction |
Single, head of household | $65,000 or less | $65,000 - $75,000 | $75,000 or more |
Married filing jointly | $104,000 or less | $104,000 - $124,000 | $124,000 or more |
Married filing separately | Less than $10,000 | $10,000 or more |
2020 Traditional IRA AGI Deduction Limits
(If NOT Covered by a Retirement Plan at Work)
Filing Status | Full Deduction | Phase-Out | No Deduction |
Single, head of household | No Limit | No Limit | No Limit |
Married filing jointly (spouse not covered) | No Limit | No Limit | No Limit |
Married filing jointly (spouse covered) | $196,000 or less | $196,000 - $206,000 | $206,000 or more |
Married filing separately (spouse covered) | Less than $10,000 | $10,000 or more |
2021 Traditional IRA AGI Deduction Limits
(If Covered by a Retirement Plan at Work)
Filing Status | Full Deduction | Phase-Out | No Deduction |
Single, head of household | $66,000 or less | $66,000 - $76,000 | $76,000 or more |
Married filing jointly | $105,000 or less | $105,000 - $125,000 | $125,000 or more |
Married filing separately | Less than $10,000 | $10,000 or more |
2021 Traditional IRA AGI Deduction Limits
(If NOT Covered by a Retirement Plan at Work)
Filing Status | Full Deduction | Phase-Out | No Deduction |
Single, head of household | No Limit | No Limit | No Limit |
Married filing jointly (spouse not covered) | No Limit | No Limit | No Limit |
Married filing jointly (spouse covered) | $198,000 or less | $198,000 - $208,000 | $208,000 or more |
Married filing separately (spouse covered) | Less than $10,000 | $10,000 or more |
2020 Roth IRA Income Limits
Filing Status | Full Contribution | Contribution Phased-Out | No Contributions |
Single Filers | $124,000 | $124,000 - $139,000 | $139,000 or more |
Joint filers | $196,000 | $196,000 - $206,000 | $206,000 or more |
2021 Roth IRA Income Limits
Filing Status | Full Contribution | Contribution Phased-Out | No Contributions |
Single Filers | $125,000 | $125,000 - $140,000 | $140,000 or more |
Joint filers | $198,000 | $198,000 - $208,000 | $208,000 or more |
The above information is detailed in our articles on Traditional IRA Rules and Roth IRA Contribution Limits.
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