{"id":3620,"date":"2020-11-04T10:02:30","date_gmt":"2020-11-04T16:02:30","guid":{"rendered":"https:\/\/cookco.us\/news\/?p=3620"},"modified":"2020-11-04T10:02:42","modified_gmt":"2020-11-04T16:02:42","slug":"new-income-ranges-for-ira-eligibility-in-2021","status":"publish","type":"post","link":"https:\/\/cookco.us\/news\/new-income-ranges-for-ira-eligibility-in-2021\/","title":{"rendered":"New income ranges for IRA eligibility in 2021"},"content":{"rendered":"\n

There are cost of living adjustments that may affect a taxpayer\u2019s pension plan and other retirement-related savings next year. People should familiarize themselves with these adjustments, so they aren\u2019t caught off guard.

Here are some highlights of the 2021 changes<\/strong>:

The income ranges for these actions all increased for 2021:<\/p>\n\n\n\n

\u2022 Determining eligibility to make deductible contributions to traditional Individual Retirement Arrangements.
\u2022 Contributing to Roth IRAs.
\u2022 Claiming the saver’s credit.<\/p>\n\n\n\n

Taxpayers can deduct contributions to a traditional IRA if they meet certain conditions. If the taxpayer or their spouse was covered by a retirement plan at work, the deduction may be reduced or phased out. This reduction goes until the deduction is eliminated. The amount of the deduction depends on the taxpayer\u2019s filing status and their income. If neither the taxpayer nor their spouse is covered by a retirement plan at work, the phase-outs don\u2019t apply.

Here are the traditional IRA phase-out ranges for 2021:<\/strong>

\u2022 $66,000 to $76,000 \u2013 Single taxpayers covered by a workplace retirement plan.
\u2022 $105,000 to $125,000 \u2013 Married couples filing jointly. This applies when the spouse making the IRA contribution is covered by a workplace retirement plan.
\u2022 $198,000 to $208,000 \u2013 A taxpayer not covered by a workplace retirement plan married to someone who\u2019s covered.
\u2022 $0 to $10,000 \u2013 Married filing a separate return. This applies to taxpayers covered by a workplace retirement plan.

Here are the income phase-out ranges for taxpayers making contributions to a Roth IRA<\/strong>:

\u2022 $125,000 to $140,000 \u2013 Single taxpayers and heads of household.
\u2022 $198,000 to $208,000 \u2013 Married, filing jointly.
\u2022 $0 to $10,000 \u2013 Married, filing separately.<\/p>\n\n\n\n

Here are the income limits for the saver’s credit, also called the retirement savings contributions credit<\/strong>:

<\/strong>\u2022 $66,000 \u2013 Married, filing jointly.
\u2022 $49,500 \u2013 Head of household.
\u2022 $33,000 \u2013 Singles and married individuals filing separately.<\/strong><\/p>\n","protected":false},"excerpt":{"rendered":"

There are cost of living adjustments that may affect a taxpayer\u2019s pension plan and other retirement-related savings next year. People should familiarize themselves with these adjustments, so they aren\u2019t caught off guard. Here are some highlights of the 2021 changes: The income ranges for these actions all increased for 2021: \u2022 Determining eligibility to make deductible […]<\/p>\n","protected":false},"author":1,"featured_media":1808,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"apple_news_api_created_at":"2020-11-04T16:02:50Z","apple_news_api_id":"da193ba5-0733-4b2c-bb75-ef7bae166369","apple_news_api_modified_at":"2020-11-04T16:02:51Z","apple_news_api_revision":"AAAAAAAAAAD\/\/\/\/\/\/\/\/\/\/w==","apple_news_api_share_url":"https:\/\/apple.news\/A2hk7pQczSyy7de97rhZjaQ","apple_news_cover_media_provider":"image","apple_news_coverimage":0,"apple_news_coverimage_caption":"","apple_news_cover_video_id":0,"apple_news_cover_video_url":"","apple_news_cover_embedwebvideo_url":"","apple_news_is_hidden":"","apple_news_is_paid":"","apple_news_is_preview":"","apple_news_is_sponsored":"","apple_news_maturity_rating":"","apple_news_metadata":"\"\"","apple_news_pullquote":"","apple_news_pullquote_position":"","apple_news_slug":"","apple_news_sections":[],"apple_news_suppress_video_url":false,"apple_news_use_image_component":false,"footnotes":""},"categories":[82],"tags":[],"class_list":["post-3620","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-tax"],"apple_news_notices":[],"_links":{"self":[{"href":"https:\/\/cookco.us\/news\/wp-json\/wp\/v2\/posts\/3620","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/cookco.us\/news\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/cookco.us\/news\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/cookco.us\/news\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/cookco.us\/news\/wp-json\/wp\/v2\/comments?post=3620"}],"version-history":[{"count":0,"href":"https:\/\/cookco.us\/news\/wp-json\/wp\/v2\/posts\/3620\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/cookco.us\/news\/wp-json\/wp\/v2\/media\/1808"}],"wp:attachment":[{"href":"https:\/\/cookco.us\/news\/wp-json\/wp\/v2\/media?parent=3620"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/cookco.us\/news\/wp-json\/wp\/v2\/categories?post=3620"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/cookco.us\/news\/wp-json\/wp\/v2\/tags?post=3620"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}