The maximum amount you can contribute to many retirement plans and Health Savings Accounts is adjusted each year.  Listed below are the maximum contribution amounts allowable for the tax year 2021:

 

Traditional IRA and Roth IRAs – Total annual contributions to your traditional and Roth IRAs combined cannot exceed:

$6,000 (under age 50)

$7,000 (age 50 or older)

 

401(k), Roth 401(k) Plans, 403(b) & 457(b)

$19,500 (under age 50)

$26,000 (age 50 or older)

 

SIMPLE IRA

$13,500 (under age 50)

$16,500 (age 50 or older)

 

SEP IRA – Those who are self-employed may qualify to save in one of these types of plans.  Contribute as much as 25% of your net earnings from self-employment (not including contributions for yourself), up to $58,000 for 2021.    

 

HSA – used if you have a ‘High deductible health plan’

Definition of High deductible health plan in the calendar year 2021 is:  a health plan with an annual deductible that is $1,400 or more for self-only or $2,800 or more for family coverage.  And the annual out-of-pocket expenses (deductibles, co-payments, and other amounts, excluding premiums) are $7,000 or less for self-only or $14,000 or less for family coverage.

 

2021 HSA Contribution limits:

$3,600 if you have self-only coverage

$7,200 for family coverage.

If you are 55 or older at the end of the year, you can put in an extra $1,000.

If you have questions regarding any of these changes, please reach out to a Kimble team member.