Retirement Planning

2021 Retirement Plan Contribution Limits

At Schultz Financial Group (SFG), we view wealth differently through our Four Capital approach. Our team works with you to build your wealth across Four Capitals – Financial Matters, Physical Well-being, Intellectual Engagement, and Psychological Space. This post focuses on an important aspect of Financial Matters: Retirement Plan Contribution Limits.  

Retirement plan contribution limits are reviewed each year and are occasionally adjusted by the IRS. Table 1 below summarizes retirement plan contribution limits for 2021.

Table 1: Retirement Plan Contribution Limits (2021)

Retirement Plan Type

2021 Contribution Limit

Age 50+ Catch-up Contribution Limit

Individual Retirement Account (IRA)



Simple IRA




25% of net earnings, up to $58,000


Employer-sponsored defined contribution plans (401(k)s, 403(b)s, profit-sharing plans, etc.)

$19,500 (elective deferral limit)

$58,000 (total limit: employee and employer contributions)



A taxpayer’s adjusted gross income (AGI) affects how much they can contribute annually to a Roth IRA. An individual can contribute up to the contribution limit so long as their AGI is below the phase-out range. A reduced contribution amount is allowed if a taxpayer’s AGI is within the phase-out range. If the taxpayer’s AGI is above the phase-out range, no Roth IRA contribution is allowed. The income phase-out range for taxpayers making Roth IRA contributions has also been adjusted. Table 2 below shows the phase-out ranges for various tax filing statuses.

Table 2: Roth IRA AGI Phase-Out Ranges

Tax Filing Status

AGI Phase-Out Range


$125,000 to $140,000

Married filing jointly

$198,000 to $208,000

Married filing separately and lived with spouse any time during the year

$0 to $10,000

Head of Household or Married filing separately and did not live with spouse

$125,000 to $140,000


AGI limits also apply to the deductibility of contributions to a traditional IRA when either the taxpayer or their spouse participates in a company-sponsored retirement plan. Table 3 below shows the phase-out ranges for traditional IRA deductions.

Table 3: Traditional IRA Deduction Phase-Out Ranges

Tax Filing Status

AGI Phase-Out Range

Single, covered by workplace retirement plan

$66,000 to $76,000

Married filing jointly, covered by workplace retirement plan

$105,000 to $125,000

Married filing jointly, spouse covered by workplace retirement plan

$198,000 to $208,000

Married filing separately, covered by workplace retirement plan

$0 to $10,000


Alyssa Yocom is an Associate Wealth Manager with Schultz Financial Group Inc.

Schultz Financial Group Inc. (SFG) is a wealth management firm located in Reno, NV. Our approach to wealth management is different from many other wealth managers, financial advisors, and financial planners. Our team of fee-only fiduciaries strives to help our clients build their wealth across four capitals: Financial Matters, Physical Well-being, Psychological Space, and Intellectual Engagement. We provide family office and wealth management services to clients located in Nevada, California, and other states. If you’d like more information, please check out our website or reach out to us via our contact page.

  • Important Disclosure Information: The information contained within this blog is for informational purposes only and is not intended to provide specific advice or recommendations.  If third party products or services are referenced in the above blog post, then Schultz Financial Group is providing that information for informational purposes only and is not recommending or endorsing any third party products or services. Please remember that past performance may not be indicative of future results. Different types of investments involve varying degrees of risk, and there can be no assurance that the future performance of any specific investment, investment strategy, or product (including the investments and/or investment strategies recommended or undertaken by Schultz Financial Group Incorporated), or any non-investment related content, made reference to directly or indirectly in this blog will be profitable, equal any corresponding indicated historical performance level(s), be suitable for your portfolio or individual situation, or prove successful. Due to various factors, including changing market conditions and/or applicable laws, the content may no longer be reflective of current opinions or positions. Moreover, you should not assume that any discussion or information contained in this blog serves as the receipt of, or as a substitute for, personalized investment advice from Schultz Financial Group Incorporated. To the extent that a reader has any questions regarding the applicability of any specific issue discussed above to his/her individual situation, he/she is encouraged to consult with the professional advisor of his/her choosing. Schultz Financial Group Incorporated is neither a law firm nor a certified public accounting firm and no portion of the blog content should be construed as legal or accounting advice. A copy of the Schultz Financial Group Incorporated’s current written disclosure statement discussing our advisory services and fees is available for review upon request. Please Note: Schultz Financial Group Incorporated does not make any representations or warranties as to the accuracy, timeliness, suitability, completeness, or relevance of any information prepared by any unaffiliated third party, whether linked to Schultz Financial Group Incorporated’s web site or incorporated herein, and takes no responsibility therefore. All such information is provided solely for convenience purposes only and all users thereof should be guided accordingly.

  • More Insights from SFG