What Is the Maximum IRA Contribution for 2021?

Estimated reading time: 2 minutes(Last Updated On: June 21, 2021)

Although the IRS has decided to keep contribution limits the same for retirement accounts this year as it was last year, they did raise eligible income levels for Roth IRAs to adjust for inflation and may even help more savers utilize Roth accounts. Here is a quick refresher on contribution limits and income restrictions:

IRA Contribution Limits

For both Traditional and Roth IRAs, savers may contribute up to $6,000, or $7,000 for people 50-years-old or older. Keep in mind, this is the total amount per person. If you have multiple IRAs, you are only allowed to contribute the $6,000 ($7,000) total between all of your accounts. The only exception to this is if you have a Spousal IRA, which allows the primary income-earner to contribute another $6,000 to an IRA of their non-working spouse. With the new age of cryptocurrency, you also need to freshen yourself up on the invest opportunities such as Bitcoin in Roth IRA.

Another caveat to retirement accounts is that you may only contribute the maximum amount as long as your income is at or above $6,000 per year. Otherwise, you can only contribute up to what your annual income is. For example, if you make $3,500 this year, you can only contribute $3,500 to a retirement account. Income counts as anything earned from salary, hourly pay, or profits from a small business. Passive income, such as earnings on an investment, do not count as eligible income.

Income Restrictions for Roth IRA Contributions

Since Roth IRAs allow you to pull out money tax-free, the government has issued income restrictions for who is allowed to contribute to these accounts. Here is a breakdown of these limits:

Single taxpayers with a MAGI of $125,000 can make a full contribution, and those with a MAGI between $125,000 and $140,000 can make a lesser contribution.

Married taxpayers can make full contributions where their MAGI is $181,000 (and lesser contributions for a MAGI between $198,000 and $208,000).


One thought on “What Is the Maximum IRA Contribution for 2021?

  1. For 2019 has anything changed? Contribution limits for those over 60 years old are still $6500.00? Will this change in 2020?

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