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Retirement Plan/IRA Limits for 2021

Retirement Plan Limits 2021 2020 2019
Maximum Compensation: $290,000 $285,000 $280,000
Defined Benefit – Annual Benefit: $230,000 $230,000 $225,000
Defined Contribution Limit: $58,000 $57,000 $56,000
401(k), 403(b), 457 Salary Deferral Limit: $19,500 $19,500 $19,000
401(k), 403(b), 457 Age 50 Catch-Up: $6,500 $6,500 $6,000
SIMPLE Salary Deferral Limit: $13,500 $13,500 $13,000
SIMPLE Age 50 Catch-Up: $3,000 $3,000 $3,000
SEP Minimum Compensation: $650 $600 $600
Highly Compensated Employee: $130,000 $130,000 $125,000
Key Employee/Officer: $185,000 $185,000 $180,000

IRA Limits 2021 2020
 IRA/Roth Maximum Contribution $6,000 $6,000
 IRA/Roth Catch-Up Contributions $1,000 $1,000
Traditional IRA Deductibility Single Filer's MAGI: Married Filing Jointly MAGI: Single Filer's MAGI: Married Filing Jointly MAGI:
Full Deduction < $66,000 <$105,000 <$65,000 <$104,000
Partial Deduction $66,000 – $76,000 $105,000 – $125,000 $65,000 – $75,000 $104,000 – $124,000
No Deduction > $76,000 > $125,000 > $75,000 > $124,000
If one spouse is covered by an employer-sponsored plan, MAGI phase-out range for deductible contribution by non-covered spouse in 2021: $198,000 - $208,000 (2020: $196,000 - $206,000)
Roth IRA Eligibility Single Filer's MAGI: Married Filing Jointly MAGI: Single Filer's MAGI: Married Filing Jointly MAGI:
Full Contribution < $125,000 < $198,000 < $124,000 < $196,000
Partial Contribution $125,000 – $140,000 $198,000 – $208,000 $124,000 – $139,000 $196,000 – $206,000
Not Eligible > $140,000 > $208,000  > $139,000 > $206,000


Withdrawals

Age: < 59 1⁄2 = 10% penalty applies
Penalty exceptions: death, disability, substantially equal periodic payments (Rule 72(t)), purchase of first-time home, higher education expenses, medical expenses, health insurance, and distributions for certain declared Presidential Disaster Area relief

Age: 59 1⁄2 – 72 = No penalty. No mandatory withdrawals.

Age: > 72 = Required minimum distributions (RMDs)

RMD Exceptions: Roth IRAs and Qualified Plans if still working and not a 5% or greater owner (may be determined by plan document)

The information herein is taken from sources deemed reliable but is not guaranteed. Stifel does not provide tax or legal advice. Since tax laws are always subject to interpretation and possible changes, you should consult with an attorney, accountant, or other qualified tax advisor as it applies to your particular situation.

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