Traditional and Roth IRA Contribution Limits for 2020 and 2021
- If you’re under 50, you can contribute a total of up to $6,000 per year across all of your traditional and Roth IRA accounts -- if your taxable income was greater than $6,000 for the year.
- If you’re over 50, or will be turning 50 by the end of the year, you can contribute up to $7,000 across all of your traditional and Roth IRA accounts -- if your taxable income was greater than $7,000 for the year.
- If your taxable income was less than $6,000 (or $7,000 if you’re 50 or older) in a given year, you can only contribute up to the amount you received in taxable compensation.
Income Restrictions for Roth IRAs
- Based on your income and filing status, you may not be eligible to contribute to a Roth IRA, or may only be able to contribute a reduced amount.
- For more detailed information, please refer to the IRS guidelines for the applicable contribution year.
SEP IRA Contribution Limits
For single employee sole proprietorships (meaning you are the only employee at your company), the contribution limits for SEP IRAs vary depending upon business revenues and your salary.
The current annual maximum is the lesser of:
- 25% of your compensation or
- $57,000 in 2020 and $58,000 in 2021
Ellevest and Folio will cap your contributions to your Ellevest SEP IRA at $57,000 for contributions associated with 2020 tax filings and $58,000 for contributions associated with 2021 tax filings, but it is up to you (and your accountant) to determine the specific contribution and deduction limits that apply to you. You can find more details on the IRS website.