The contribution limits and income thresholds for 2021 have been released by the IRS. As these accounts can represent a substantial portion of your retirement nest egg, it makes sense to take advantage of the tax breaks for contributions today and maximize your income when you are ready to retire.
In terms of amounts that can be contributed, there are no increases for the main types of retirement plans (Traditional IRA and Roth) for 2021. However, some of the AGI thresholds have been adjusted for inflation.
As you go through your transitions, know that BakerAvenue is here for you and your family. Contact us for additional retirement planning questions you may have.