Know the 2021 IRS contribution limits

The Internal Revenue Service (IRS) sets limits on the amount you can contribute to workplace plans—401(k), 403(b), and 457 plans—and to Individual Retirement Accounts (IRAs) each year.   

2021 annual limits

  Workplace plan IRA
2021 annual limit $19,500 $6,000
2021 catch-up contribution   $6,500 $1,000
total if age 50+ $26,000 $7,000

Contribution limits have stayed the same from 2020 to 2021 for workplace plans, IRAs, and catch-up contributions. For 2021, the workplace plan contribution limit is $19,500. The limit for governmental 457 plans is separate from the limit for 401(k) and 403(b) plans, so if your employer offers multiple types of plans, you can contribute to the limit in the governmental 457 plan and also in the 401(k) or 403(b) plan.

IRA annual limits

For 2021, the contribution limit is $6,000. The limit is the most you can contribute across all the IRAs you own.

If you’re married and file a joint return, you may be able to make a contribution for your spouse. This means the total combined contributions that can be made to your IRA and your spouse's IRA can be as much as $12,000.

Save more if you’re 50 or over

Depending on your plan, catch-up contributions let you contribute more money to your workplace retirement plan or IRA after age 50. You're eligible on January 1 of the year you turn 50, no matter how late in the year your birthday falls.

The workplace plan catch-up contribution for 2021 is an additional $6,500, for an annual total of $26,000. The catch-up contribution for IRAs is an additional $1,000, for a total of $7,000. You can also make a catch-up contribution of $1,000 to your spouse’s IRA, if your spouse is age 50 or over. Learn more ways to elevate your retirement savings strategy.

This material is provided by The Lincoln National Life Insurance Company, Fort Wayne, IN, and, in New York, Lincoln Life & Annuity Company of New York, Syracuse, NY and their applicable affiliates (collectively referred to as “Lincoln”). This material is intended for general use with the public. Lincoln does not provide investment advice, and this material is not intended to provide investment advice. Lincoln has financial interests that are served by the sale of Lincoln programs, products and services.