Maximum IRA Contribution Limits for 2020-2021

Catch up on provisions, IRA comparison, and deadlines.

Take advantage of tax benefits while saving for retirement in a self-directed IRA. You can establish a self-directed IRA account with a cash contribution. Check out how much you can contribute to an IRA and the deadline to make this contribution.

The deadline for 2020 IRA contributions is May 17, 2021.

2020-2021 Self-Directed Traditional IRA and Roth IRA Contribution Limits

2020

2021

Traditional IRA and Roth IRA
Contribution Limits if Under Age 50
$6,000
$6,000
Traditional IRA and Roth IRA
Catch-Up Contribution if Over Age 50
+$1,000 ($7,000 max.)
+$1,000 ($7,000 max.)
Contribution Deadline
May 17, 2021
April 15, 2022

2020-2021 Self-Directed SEP IRA Contribution Limits

2020

2021

SEP Employer Contribution Limits
Up to 25% of compensation, with a maximum of $57,000
Up to 25% of compensation, with a maximum of $58,000
Employee Contributions
N/A
N/A
Employer Contribution Deadline
May 17 or employer’s tax filing deadline (including extensions)
April 15 or employer’s tax filing deadline (including extensions)

2020-2021 Self-Directed SIMPLE IRA Contribution Limits

2020

2021

Employee Contribution Limits if Under 50
$13,500
$13,500
Catch-Up Employee Contribution Limits if Over Age 50
+$3,000 ($16,500 max.)
+$3,000 ($16,500 max.)
SIMPLE Employer Contribution
Mandatory 3% matching contribution or 2% non-elective contribution
Mandatory 3% matching contribution or 2% non-elective contribution
Employee Salary Reduction Contribution Deadline
Within 30 days after the month in which deferred
Within 30 days after the month in which deferred
Employer Contribution Deadline
Employer’s tax filing deadline (including extensions)
Employer’s tax filing deadline (including extensions)
Self-Employed (with no common-law employees) Contribution Deadline
May 17, 2021
January 30, 2022

2020-2021 Coverdell Education Savings Account (ESA) Contribution Limits

2020

2021

Contribution Limits
$2,000 per year until the child is age 18 or has special needs.
$2,000 per year until the child is age 18 or has special needs.
Contribution Deadline
May 17, 2021
April 15, 2022

2020-2021 Health Savings Account (HSA) Contribution Limits

2020

2021

High Deductibles/Out-of-Pocket Limits
Single coverage:
minimum $1,400 / maximum $6,900

Family coverage:
minimum $2,800 / maximum $13,800
Single coverage:
minimum $1,400 / maximum $7,000

Family coverage:
minimum $2,800 / maximum $14,000
Contribution Limits
Single coverage: $3,550

Family coverage: $7,100
Single coverage: $3,600

Family coverage: $7,200
Catch-Up if Over Age 55
$1,000
$1,000
Contribution Deadline
May 17, 2021
April 15, 2022

IRA Comparison Chart 2020-2021

SEP IRA
SIMPLE IRA
ROTH IRA
TRADITIONAL
Eligibility
Self-employed individuals or small business owners, including those with employees: sole proprietors, partnerships, C corporations, S corporations
Businesses with 100 or fewer employees: sole proprietors, partnerships, C corporations, S corporations

Participating employees must have earned at least $5,000 in compensation during any two years preceding
No age limit

Must have earned income
No age limit

Must have earned income
Contribution Limits
Employer: 25% of compensation or maximum cap for the year (the lesser amount)

2020 max:
$57,000

2021 max:
$58,000

Each eligible employee must receive the same percentage.

Contributions are not mandatory.
Employer contributions: Mandatory 3% matching contribution or 2% non-elective

Participant contributions:

2020: Up to $13,500 in salary deferrals ($16,500 if age 50 or older)

2021: Up to $13,500 in salary deferrals ($16,500 if age 50 or older)
2020: $6,000 ($7,000 if age 50 or older)

2021: $6,000 ($7,000 if age 50 or older)

Contributions are not tax-deductible.
2020: $6,000 ($7,000 if age 50 or older)

2021: $6,000 ($7,000 if age 50 or older)
Highlights
Tax-deferred, so you don’t pay taxes until withdrawn at retirement

Tax-deductible contributions

Easy to set up and maintain

Funded by employer contributions only
Tax deferred, so you don’t pay taxes until withdrawn at retirement

Employer contributions are deductible as business expenses

Funded by employee deferrals and employer contributions
Earnings grow tax-free

Taxes are paid up front, so you’re able to withdraw your contributions tax-free and penalty-free at any time
Tax-deductible contributions based on Modified Adjusted GrossIncome (MAGI)
Contribution Deadline
Employers only:Employer’s tax filing deadline (including extensions)
Employees:No later than 30 days after the month in which deferred

Employer: Employer’s tax filing deadline (including extensions)

Self-employed (with no common-law employees): January 30
May 17
April 15