CK Newsletter November 2020: 2021 Contribution Limit Changes, and Intentional Joy

This month from Colman Knight:

  • Taxes: New Limitations and Contribution Limit Changes for 2021
  • Limited-time offer: MoneyMoves® Online Game is free!
  • November’s Going Green theme: Intentional Joy

 


MoneyMoves® Online Game

is free to register until end of 2020.

Tell your friends!
To celebrate the launch of the new Somatic Finance website, the Game is free through 2020!
Engage sixty days of money exploration with money stories, activities, journaling and developmental practices.

 


Tax Changes for 2021

Every year, the U.S. tax system resets its limitations and allowable contributions due to inflation, and the most recent changes—affecting tax year 2021—were recently announced.

Last year, single taxpayers could fully deduct their contributions to traditional IRA accounts if their income was at or below $65,000; now that income limit has moved up to $66,000, at which point the allowable deduction phases out until it disappears completely at the $76,000 income level. For married filing jointly couples, the phase-out range shifted slightly, from $105,000-$125,000, up from $104,000-$124,000 income levels. The limit on annual contributions remains at $6,000, with a $1,000 additional permitted “catch-up” contribution for people age 50 and over.

The limits on contributions that can be made by employees who participate in 401(k), 403(b) and most 457 plans was unchanged at $19,500, and there was no change in the $6,500 catch-up contribution limit for employees age 50 and over. Participants in SIMPLE retirement accounts can still contribute $13,500.

The limitation on the annual benefit under a defined benefit plan remains unchanged at $230,000, and the limitation for defined contribution plans will go up in 2021 from $57,000 to $58,000.

Sources:
https://www.irs.gov/newsroom/income-ranges-for-determining-ira-eligibility-change-for-2021
https://www.irs.gov/pub/irs-drop/n-20-79.pdf


Year of Wealth – Going Green:

Intentional Joy!

[click image for larger text on the fun one-pager]

Join the discussion on Going Green Facebook Group

 


Stay in touch:

Colman Knight is available by phone or mail at our Acton location,
and we are happy to meet with you
via Zoom anytime.
Colman Knight Advisory Group
530 Great Road
Acton, MA 01720
978-371-2015

 

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