What you need to know about 2021 IRA Contributions!

Craig Watkins |

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What you need to know about IRA Contributions

 

  • Each individual who is eligible, can contribute a limit of $6,000.00 for the year 2021
  • If eligible and over the age of 50, you can contribute a “catch up” contribution limit of an extra $1,000.00
  • In order to be eligible to contribute to an IRA, you must have earned income from working. 
  • The amount you contribute to an IRA must not exceed the amount of earned income you received from working each year
  • If you don’t have a 401k for your or your spouse, your IRA contribution may also be tax deductible. 
  • If you don’t have a 401k you may qualify to deduct some or all of your contribution.

 

Please see the following charts to compare your 2020 and 2021 Modified Adjusted Gross Income* tax details

 

(*Modified Adjusted Gross Income, is your adjusted gross income with certain deductions and exclusions added to arrive at your MAGI.  See your tax professional for additional guidance regarding this amount and also IRS publication 590-A)

 

                                                                                                                                                                               IRA Account Tax Information Chart

ROTH IRA Account Tax Information

                                                                                                                   

Craig J. Watkins is an investment advisor representative of, and advisory services are offered through, USA Financial Securities Corp. Member FINRA/SIPC.  A Registered Investment Advisor located at 6020 E. Fulton St., Ada, MI 49301.  Cornerstone Financial Group is not affiliated with USA Financial Securities, CA License #0591010