2020 to 2021 IRA Maximum Contribution, Income and Deduction Limits Factoring in Employer Coverage Restrictions

I’ve written a fair bit on tax-advantaged individual retirement plans, but still keep getting lots of questions on this topic. This is likely due to two main factors. One, thanks to the complexities of our tax code, it is not always easy to find current and applicable IRA/401K information. Secondly, because you can have multiple tax-advantaged accounts (e.g a 401K and Roth IRA account) at the same time it is not clear what and how much you can contribute. Hopefully this article can make things clearer when it comes to Individual Retirement Accounts (IRA). I am using information directly from the IRS, so you have the official word.

There are 3 things you need to consider when determining if you can make IRA contributions. The first is whether you (or your spouse if applicable) already contribute to an employer sponsored retirement account, like a 401K or 403b plan. Secondly you need to see what you can contribute based on your Modified Adjusted Gross Income( MAGI). Finally you need to determine how much you can contribute based on your filing status and age.

Below are the latest limits for Traditional IRA plans. For past years see the 401K/IRA resource page.

Year
IRA Contribution Limit
IRA Contribution - Tax Deduction Qualification Income Phase-out Ranges
2021
$6,000 ($7,000 if > 50 years old)
(Single and have Employer Plan) - $66,000 to $76,000
(Married and have Employer Plan) - $105,000 to $125,000
(Married Filing Separately and have Employer Plan) - $0 to $10,000
(Married and Spouse has Employer Plan) - $198,000 to $208,000
2020
$6,000 ($7,000 if > 50 years old)
(Single and have Employer Plan) - $65,000 to $75,000
(Married and have Employer Plan) - $104,000 to $124,000
(Married Filing Separately and have Employer Plan) - $0 to $10,000
(Married and Spouse has Employer Plan) - $196,000 to $206,000
2019
$6,000 ($7,000 if > 50 years old)
(Single and have Employer Plan) - $64,000 to $74,000
(Married and have Employer Plan) - $103,000 to $123,000
(Married Filing Separately and have Employer Plan) - $0 to $10,000
(Married and Spouse has Employer Plan) - $193,000 to $203,000
2018
$5,500 ($6,500 if > 50 years old)
(Single and have Employer Plan) - $63,000 to $73,000
(Married and have Employer Plan) - $101,000 to $121,000
(Married Filing Separately and have Employer Plan) - $0 to $10,000
(Married and Spouse has Employer Plan) - $189,000 to $199,000
2017
$5,500 ($6,500 if > 50 years old)
(Single and have Employer Plan) - $62,000 to $72,000
(Married and have Employer Plan) - $99,000 to $119,000
(Married Filing Separately and have Employer Plan) - $0 to $10,000
(Married and Spouse has Employer Plan) - $186,000 to $196,000

Note that the above are the maximum contributions you can deduct for all of your traditional AND Roth IRAs in the current tax year. The IRA contribution limits does not apply to rollover contributions.

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