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Can I Contribute More Money to my Retirement Account Next Year?

Can you contribute more money to your retirement account next year? The United States Treasury Department has just come out with the new 2021 adjusted figures for retirement account savings. Watch this week's Arista Advice to find out what changed!

Full Transcript:

Hello, welcome to Arista Advice. 

Question of the week is: "Paul, can I contribute more money to my retirement  account next year?" On October 26th, United States Treasury Department released the 2021 adjusted figures for retirement account savings. Although these adjustments won't bring any major changes. There are some minor elements to note. 

401(k) plans: the salary deferral amount for 401(k)s remain the same at $19,500 and the catch up, for those 50 years and older, remains the same at $6,500 unchanged. However, the overall plan limit for these plans will increase from $57,000 to $58,000 in 2021.

IRAs: the annual limit on contributions remains at $6,000 for 2021, and the catch up provision, for those 50 and over, get an additional thousand dollars.

Roth IRAs: the adjusted gross income, the AGI phase-out for couples filing jointly is $198,000 to $208,000. For those who file as single or head of household, the income phase-out range has increased from $125,000 to  $140,000.

Although these modest increases won't impact many, it's natural to  have questions anytime the government makes changes.

Please visit AristaWealth.com or Arista Wealth podcast to get additional tools, tips, and videos. And give us a call to discuss these and any other important topics. Have a great day.