Bulletin
Investor Alert

Oct. 31, 2020, 11:25 a.m. EDT

401(k) and IRA changes for 2021: Where and how can you contribute next year?

new
Watchlist Relevance
LEARN MORE

Want to see how this story relates to your watchlist?

Just add items to create a watchlist now:

or Cancel Already have a watchlist? Log In

Alessandra Malito

Like many Americans, the Internal Revenue Service is looking ahead to 2021, and on Monday the agency announced what changes to expect for individual retirement accounts and 401(k) contribution limits. 

What savers can actually contribute to their accounts has remained unchanged for 401(k), 403(b), most 457 plans and Thrift Savings Accounts, the IRS said in its announcement. That means workers will still be able to save $19,500, or $26,000 if they are aged 50 or older (thanks to the catch-up contribution limit, unchanged at $6,500). 

Individual retirement account contribution limits are also the same for 2021 — $6,000 with an additional catch-up contribution of $1,000 for people 50 and older. SIMPLE retirement accounts still have the limit at $13,500 for next year. 

See: I want to take money out of my Roth IRA tax-free — when can I do that?

But here’s what has changed for 2021: 

This Story has 0 Comments
Be the first to comment
More News In
Retirement

Story Conversation

Commenting FAQs »

Partner Center

Link to MarketWatch's Slice.