401(k) and IRA changes for 2021: Where and how can you contribute next year?

Like many Americans, the Internal Revenue Service is looking ahead to 2021, and on Monday the agency announced what changes to expect for individual retirement accounts and 401 contribution limits.

What savers can actually contribute to their accounts has remained unchanged for 401, 403, most 457 plans and Thrift Savings Accounts, the IRS said in its announcement. That means workers will still be able to save $19,500, or $26,000 if they are aged 50 or older . Individual retirement account contribution limits are also the same for 2021 — $6,000 with an additional catch-up contribution of $1,000 for people 50 and older. SIMPLE retirement accounts still have the limit at $13,500 for next year.But here’s what has changed for 2021:

Those who are allowed to contribute to a Roth IRA. Individuals who contribute to a Roth IRA do not receive tax deductions and are held to income limits. For 2021, the income phaseout ranges are: The income limit for the Saver’s Credit. Low- and moderate-income workers have an income limit of $66,000 if they are married filing jointly, up from $65,000 in 2020. Heads of household have a limit of $49,500, and single individuals or those married filing separately have a limit of $32,500.

Paying the taxes on your Bitcoin . The IRS is after back taxes on virtual currencies & gave a hint to file on the 2019 Tax Return. Imagine going back all the way with a 1040X. IRS savings , saving your financial ass

They rely on your greed. The value of dollar today is five to ten times more than in thirty years. Do not put all your eggs in one basket. Mutual Funds, great investment. IRS with tax penalties love wealth & poverty, all same.

Biden will ruin stocks by increasing capital gain taxes, which hurt 401k’s

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