Updated Contributions Limits for 2021
At the beginning of each year, the IRS updates contribution limits for various savings vehicles to allow for the increased cost of living that inevitably occurs over time. The updated numbers for 2021 are as follows:
Traditional and Roth IRA contribution limits stayed the same at $6,000 per year, with a $1,000 catch-up contribution available to those 50 and older. Roth eligibility thresholds increased from $124,000 to $125,000 for those filing single and from $196,000 to $198,800 for those filing married filing jointly.
SEP IRAs remain limited to a max of 25% of compensation, but the max flat dollar limit did increase from $57,000 to $58,000.
The lifetime exemption for estate taxes was increased from $11,580,000 to $11,700,000.
Health Savings Account contribution limits increased from $3,550 to $3,600 for individuals and from $7,100 to $7,200. Catch up contributions stayed the same at $1,000 as did minimum annual deductibles at $1,400 for individuals and $2,800 for families. Max out-of-pocket requirements increased from $6,900 to $7,000 for individuals and from $13,800 to $14,000 for families.