2021 IRA Contribution Limit
For 2021, the IRA Contribution Limit is $6,000 (Annual contribution limit) and +$1,000 (Catch-up contribution limit, age 50 and over).
Effective 2021-01-01Source: IR-2020-244, Income ranges for determining IRA eligibility change for 2021 (IRS)Verified 2026-09-01
Compared with 2020
Every figure on this page is unchanged from 2020.
| Item | 2020 | 2021 | Change |
|---|---|---|---|
| Annual contribution limit | $6,000 | $6,000 | +$0 (+0.0%) |
| Catch-up contribution limit, age 50 and over | +$1,000 | +$1,000 | +$0 (+0.0%) |
Who it applies to
Individuals who contribute to a traditional IRA or Roth IRA
What changed this year, and why
The IRA contribution limits for 2021 are unchanged from 2020.
Common questions
- What is the IRA contribution limit for 2021?
- The annual contribution limit for an IRA is $6,000 for 2021.
- Is there an additional contribution limit for older individuals?
- Yes. Individuals who are age 50 or older can make an additional catch-up contribution of $1,000.
The extra amount once you reach 50
If you are age 50 or older by the close of 2021, the IRS permits an additional catch-up contribution of $1,000 on top of the regular $6,000 annual limit, raising your maximum to $7,000. The catch-up amount applies to the combined total you put into all of your traditional IRAs for the year; it is not a separate $1,000 allowance per account. The rule looks only at whether you reached age 50 at any point during 2021, so a birthday on December 31 still qualifies you for the full $1,000 addition. The same $1,000 catch-up also applies to Roth IRAs, though Roth contributions remain subject to their own income-based phaseout. In every case, your contribution for the year still cannot exceed your taxable compensation, and if you or your spouse are covered by a workplace retirement plan, your deduction for a traditional IRA contribution may be reduced or eliminated based on modified AGI.
For 2021, the most that can be contributed to your tradi- tional IRA is generally the smaller of the following amounts. • $6,000 ($7,000 if you are age 50 or older). • Your taxable compensation (defined earlier) for the year.
Publication 590-A (2021), Contributions to Individual Retirement Arrangements (IRAs) (IRS)
You cannot contribute more than you earned
The dollar limit is a ceiling, not an entitlement. What you may put into a traditional IRA is the smaller of that limit and your taxable compensation for the year, so someone who earned less than $6,000 is capped at what they earned, and someone with no compensation at all has no room to contribute on their own record. Compensation here means what you earn from working - wages, salaries, tips, professional fees and self-employment earnings - not investment income, and not a pension. Two consequences catch people out. The cap applies whether the contribution would be deductible or not, so choosing a nondeductible contribution buys no extra room. And on a joint return the compensation of the higher-earning spouse can support a contribution for the other, which is the one exception worth knowing.
Generally, an excess contribution is the amount contrib- uted to your traditional IRAs for the year that is more than the smaller of: • $6,000 ($7,000 if you are age 50 or older), or • Your taxable compensation for the year. The taxable compensation limit applies whether your contributions are deductible or nondeductible.
Publication 590-A (2021), Contributions to Individual Retirement Arrangements (IRAs) (IRS)
Why a workplace plan can take the deduction away
If you or your spouse participates in an employer-sponsored retirement plan, the ability to deduct your traditional IRA contribution from your federal taxable income is subject to a phaseout based on your modified adjusted gross income (AGI). For 2021, the annual contribution limit is $6,000, with an additional catch-up contribution limit of $1,000 for those age 50 and older, but the deduction you can claim may be reduced or eliminated entirely depending on your income level and filing status. The phaseout applies to the deduction, not the contribution itself—you can still make the full contribution, but you may not be able to deduct it from your taxes. If neither you nor your spouse is covered by a workplace plan, the full deduction is generally available regardless of income. The IRS provides specific income thresholds in tables that vary by filing status (single, married filing jointly, married filing separately) to determine whether you receive a full deduction, partial deduction, or no deduction. Modified AGI includes not just your earned compensation but also other income such as interest, dividends, and IRA distributions.
Covered by a retirement plan. If you are covered by an employer retirement plan and you didn’t receive any social security retirement benefits, your IRA deduction may be reduced or eliminated depending on your filing status and modified AGI, as shown in Table 1-2.
Publication 590-A (2021), Contributions to Individual Retirement Arrangements (IRAs) (IRS)
How late you can still contribute for a year
You don't have to wait until the end of the year to contribute to your IRA for that year—you can make contributions at any point during the tax year. But if you miss the deadline, you can still contribute up until the due date for filing your federal income tax return for that year, without counting any extensions. For 2021 contributions, this meant April 18, 2022. Once that date passes, the window closes and you cannot go back and make a contribution for that prior year, even if you file for an extension on your return. If you make a contribution between January 1 and mid-April, you should tell your IRA sponsor which year you intend the contribution for (the current year or the prior year); otherwise the sponsor may assume and report to the IRS that it is for the year the money was received. You can also file your tax return claiming a deduction before the contribution is actually made, as long as the contribution arrives by the return's due date. The annual contribution limit for 2021 is $6,000, with a catch-up contribution limit of $1,000 for those age 50 and older, but any contribution for a given year must be deposited by that year's filing deadline to count.
Contributions must be made by due date. Contribu- tions can be made to your traditional IRA for a year at any time during the year or by the due date for filing your re- turn for that year, not including extensions.
Publication 590-A (2021), Contributions to Individual Retirement Arrangements (IRAs) (IRS)
The 6% tax on contributing too much
Putting in more than the limit is not a one-off penalty, and that is what makes it expensive. An excess contribution left in the account attracts a 6% tax, and the same 6% is charged again every year the excess is still there at the end of the tax year. Someone who overshot the $6,000 limit years ago and never noticed owes it once for each of those years. There is a way out, and it has a deadline: withdraw the excess by the due date of that year's return, including extensions, and the tax does not apply. The charge is capped at 6% of the combined value of all your IRAs, which limits the damage in a small account. It is figured on Form 5329, not on the return itself.
In general, if the excess contributions for a year aren’t withdrawn by the date your return for the year is due (in- cluding extensions), you are subject to a 6% tax. You must pay the 6% tax each year on excess amounts that remain in your traditional IRA at the end of your tax year. The tax can’t be more than 6% of the combined value of all your IRAs as of the end of your tax year.
Publication 590-A (2021), Contributions to Individual Retirement Arrangements (IRAs) (IRS)
How each figure was verified
Each number below was read from a stored copy of the document named beside it, and checked to occur word for word in the quoted sentence. The digest is of that stored text.
IR-2020-244, Income ranges for determining IRA eligibility change for 2021 (IRS)
- Annual contribution limit
The limit on annual contributions to an IRA remains unchanged at $6,000.
- Catch-up contribution limit, age 50 and over
The additional catch-up contribution limit for individuals aged 50 and over is not subject to an annual cost-of-living adjustment and remains $1,000.