Here are some highlights of the 2021 changes:The income ranges for these actions all increased for 2021:
- Determining eligibility to make deductible contributions to traditional Individual Retirement Arrangements.
- Contributing to Roth IRAs.
- Claiming the saver's credit.
Here are the traditional IRA phase-out ranges for 2021:
- $66,000 to $76,000 – Single taxpayers covered by a workplace retirement plan.
- $105,000 to $125,000 – Married couples filing jointly. This applies when the spouse making the IRA contribution is covered by a workplace retirement plan.
- $198,000 to $208,000 – A taxpayer not covered by a workplace retirement plan married to someone who's covered.
- $0 to $10,000 – Married filing a separate return. This applies to taxpayers covered by a workplace retirement plan.
- $125,000 to $140,000 – Single taxpayers and heads of household.
- $198,000 to $208,000 – Married, filing jointly.
- $0 to $10,000 – Married, filing separately.
- $66,000 – Married, filing jointly.
- $49,500 – Head of household.
- $33,000 – Singles and married individuals filing separately.