ROTH IRA (Tax Year 2021)

Roth IRA contributions are made on an after-tax basis. However, keep in mind that your eligibility to contribute to a Roth IRA is based on your income level. If you file taxes as a single person, your Modified Adjusted Gross Income (MAGI) must be under $139,000 for the tax year 2020 and under $140,000 for the tax year 2021 to contribute to a Roth IRA, and if you're married and file jointly, your MAGI must be under $206,000 for the tax year 2020 and 208,000 for the tax year 2021. The maximum total annual contribution for all your IRAs combined is:

  • $6,000 if you're under age 50
  • $7,000 if you're age 50 or older

Roth IRA Contribution Limits (Tax year 2021)
Single Filers (MAGI) Married Filing Jointly (MAGI) Married Filing Separately (MAGI) Maximum Contribution for individuals under age 50 Maximum Contribution for individuals age 50 and older
under $125,000 under $198,000 $0 $6,000 $7,000
$126,500 $199,000 $1,000 $5,400 $6,300
$128,000 $200,000 $2,000 $4,800 $5,600
$129,500 $201,000 $3,000 $4,200 $4,900
$131,000 $202,000 $4,000 $3,600 $4,200
$132,500 $203,000 $5,000 $3,000 $3,500
$134,000 $204,000 $6,000 $2,400 $2,800
$135,500 $205,000 $7,000 $1,800 $2,100
$137,000 $206,000 $8,000 $1,200 $1,400
$138,500 $207,000 $9,000 $600 $700
$140,000 & over $208,000 & over $10,000 & over $0 $0

1. You may contribute simultaneously to a Traditional IRA and a Roth IRA (subject to eligibility) as long as the total contributed to all (Traditional and/or Roth) IRAs totals no more than $6,000 ($7,000 for those age 50 and over) for tax year 2020 and no more than $6,000 ($7,000 for those age 50 and over) for tax year 2021.

Traditional IRA (Tax Year 2021)

Traditional IRA contributions are not limited by how much you make annually, meaning that anyone with an earned income is eligible to participate, but your contribution may not be fully deductible. There are Traditional IRA contribution limits to how much you can put in. The maximum total annual contribution for all your IRAs (Traditional and Roth) combined is:

$6,000 (for 2020) and $6,000 (for 2021) if you're under age 50
$7,000 (for 2020) and $7,000 (for 2021) if you're age 50 or older
The deadline to make a Traditional IRA contribution for the current tax year is typically April 15 of the following tax year.

Filing Status: Single
Tax Deductibility of IRA Contributions (Tax Year 2020) for participants in employer-sponsored retirement plans
Modified Adjusted Gross Income (MAGI) Allowable Deduction
$66,000 or less A full deduction up to the lesser of $6K ($7K if you're 50 or older) of your taxable compensation
Between $66,000 and $76,000 A partial deduction based on your MAGI
$76,000 or more No deduction
Filing Status: Married Filing Jointly - You Participate in a retirement plan at work
Filing Status: Married Filing Jointly - You Participate
Modified Adjusted Gross Income (MAGI) Allowable Deduction
$105,000 or less A full deduction up to the lesser of $6K ($7K if you're 50 or older) of your taxable compensation
Between $105,000 and $125,000 A partial deduction based on your MAGI
$125,000 or more No deduction

Filing Status: Married Filing Jointly - Spouse Participates in a retirement plan at work

Filing Status: Married Filing Jointly - Spouse Participates
Modified Adjusted Gross Income (MAGI) Allowable Deduction
$198,000 or less A full deduction up to the lesser of $6K ($7K if you're 50 or older) of your taxable compensation
Between $198,000 and $208,000 A partial deduction based on your MAGI
$208,000 or more No deduction