KEY POINTS:

  • (1) Overall, 401K/Roth IRA/SIMPLE/SEP contribution limits are the same in 2021

  • (2) Trad IRA: For single taxpayers covered by a workplace retirement plan, the new phase-out range is $66,000 to $76,000. For married couples filing jointly, where the spouse making the IRA contribution is covered by a workplace retirement plan, the new phase-out range is $105,000 to $125,000,

  • (3) Trad IRA: For people who is not covered by a workplace retirement plan and is married to someone who is covered, the new income phase is between $198,000 and $208,000

  • (4) Roth IRA: The new income phase-out range for singles and heads of household will be $125,000-$140,000, For married couples filing jointly, the new range will be $198,000 to $208,000

  • (5) HSA limits will increase to $3,600 Single / $7,200 Family

  • (6) Social Security payments will increase by 1.3%

  • (7) The earnings subject to the Social Security tax will climb to $142,800

We cannot believe that 2020 is almost over! With all “excitement” that the pandemic had to offer, we can’t wait to start fresh in 2021. With that being said, it means that it’s time for updates on IRS limits.

Want to learn how to plan for Retirement?Check out our The Optometrist's Guide to Retirement

Need help with your Tax? Check out our Recommended Tax Experts 

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About DatBuiOD

Dr. Bui is a lead optometrist at the Apple Wellness Center in the heart of Silicon Valley. He has a deep passion for ocular disease and healthcare technology. He started his career with $230K of student debt and has been focusing on strategies on attacking this massive debt such as budgeting and personal finance, along with investing. He is a big advocate for passive index funding with a small portfolio toward technology stocks. Lastly, he wants to help all new doctors and high-earning professionals navigate toward wealth and financial independence.

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