IRA Contribution Limits for 2021
The annual IRA contribution limit in 2021 is $6,000 for people under 50. But there are additional restrictions for some.
The annual IRA contribution limit is $6,000 in 2021 ($7,000 if age 50 or older). The IRA contribution limits apply to your combined traditional and Roth IRA contributions. Roth IRA contributions may be limited if your modified adjusted gross income (MAGI) is over a certain threshold.
But the annual contribution limit is just one part of the IRA contribution rules. Below, the details about how much you can contribute to a Roth IRA based on your income, and how to determine whether your contribution to a traditional IRA will be deductible.
IRA income and deduction limits
Both traditional and Roth IRAs also impose restrictions in certain circumstances:
Roth IRA contribution limits: The amount you can contribute is reduced — and eventually eliminated — at higher incomes.
Traditional IRA deduction limits: You can always contribute the full amount, but your ability to deduct contributions may be reduced or eliminated if you or your spouse has a 401(k) or other retirement plan at work and contributions were made for the plan year (this includes employer contributions). No matter what your income, your deduction is allowed in full if neither you or your spouse are covered by a retirement plan at work.
Here’s the full breakdown of those income limits in 2020 and 2021 for traditional IRAs and Roth IRAs, which are based on your modified adjusted gross income. MAGI is adjusted gross income with some deductions and exclusions added back in. (For instructions on figuring your MAGI, see IRS Publication 590-A, Worksheet 1-1 for traditional IRAs and Worksheet 2-1 for Roth IRAs.)
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Traditional IRA income limits in 2020 and 2021
Note: Traditional IRA income limits apply only if you (or your spouse) have a retirement account at work.
Filing status | 2020 MAGI | 2021 MAGI | Deduction |
|---|---|---|---|
Single or head of household (and covered by retirement plan at work) | $65,000 or less | $66,000 or less | Full deduction |
More than $65,000 but less than $75,000 | More than $66,000 but less than $76,000 | Partial deduction | |
$75,000 or more | $76,000 or more | No deduction | |
Married filing jointly (and covered by retirement plan at work) | $104,000 or less | $105,000 or less | Full deduction |
More than $104,000 but less than $124,000 | More than $105,000 but less than $125,000 | Partial deduction | |
$124,000 or more | $125,000 or more | No deduction | |
Married filing jointly (spouse covered by retirement plan at work) | $196,000 or less | $198,000 or less | Full deduction |
More than $196,000 but less than $206,000 | More than $198,000 but less than $208,000 | Partial deduction | |
$206,000 or more | $208,000 or more | No deduction | |
Married filing separately (you or spouse covered by retirement plan at work) | Less than $10,000 | Less than $10,000 | Partial deduction |
$10,000 or more | $10,000 or more | No deduction |
Roth IRA income limits in 2020 and 2021
Filing status | 2020 MAGI | 2021 MAGI | Maximum annual contribution |
|---|---|---|---|
Single, head of household or married filing separately (if you didn't live with spouse during year) | Less than $124,000 | Less than $125,000 | $6,000 ($7,000 if 50 or older) |
$124,000 up to $139,000 | $125,000 up to $140,000 | Contribution is reduced | |
$139,000 or more | $140,000 or more | No contribution allowed | |
Married filing jointly or qualifying widow(er) | Less than $196,000 | Less than $198,000 | $6,000 ($7,000 if 50 or older) |
$196,000 up to $206,000 | $198,000 up to $208,000 | Contribution is reduced | |
$206,000 or more | $208,000 or more | No contribution allowed | |
Married filing separately (if you lived with spouse at any time during year) | Less than $10,000 | Less than $10,000 | Contribution is reduced |
$10,000 or more | $10,000 or more | No contribution allowed |
Exceptions to IRA contribution limits
This is the IRS, so you’re probably not surprised to hear there are a couple caveats you should know about.
You generally can’t contribute more than you earn. If your taxable compensation for the year is $4,000, that’s also your IRA contribution limit.
If you’re a nonworking spouse, you can have what’s called a spousal IRA as long as your spouse earns enough to cover the contribution. That means if you both want to contribute the maximum to an IRA, and you’re both under 50, your spouse will need to earn at least $12,000 (to cover the $6,000 annual maximum for each of you).
The limit also doesn’t apply to transfers from other retirement accounts, such as those used to create a rollover IRA. You should also note the deadline for IRA contributions for any given tax year is tax day — typically around April 15 — of the following calendar year.
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