Retirement

IRA Limits	2020	2021
IRA – Traditional or Roth (income limits apply)	$6000 ($7000 for those age 50 and older)	$6000 ($7000 for those age 50 and older)
SEP IRA Limits	2020	2021
Employee	0	0
Employer	Up to 25% of W-2 wages for all eligible employees, $57,000 max	Up to 25% of W-2 wages for all eligible employees, $58,000 max
Self-Employed	25% of (net self-employment income minus SE tax), $57,000 max	25% of (net self-employment income minus SE tax), $58,000 max
Simple IRA	2020	2021
Employee	$13,500 ($16,500 for those age 50 or older)	$13,500 ($16,500 for those age 50 or older)
Employer	Option 1: match employee contributions up to 3% of gross wages (can be reduced as low as 1% in 2 out of 5 years); or Option 2: 2% of wages for all employees, $285,00 Max	Option 1: match employee contributions up to 3% of gross wages (can be reduced as low as 1% in 2 out of 5 years); or Option 2: 2% of wages for all employees, $290,00 Max
Self-Employed	100% of self-employment income up to $13,500 ($16,500 for those age 50 or older) PLUS 3% of (remaining self-employment income minus one half of SE tax)	100% of self-employment income up to $13,500 ($16,500 for those age 50 or older) PLUS 3% of (remaining self-employment income minus one half of SE tax)
401-K	2020	2021
Employee	$19,500 ($26,000 for those age 50 and older)	$19,500 ($26,000 for those age 50 and older)
Employer	Up to 25% of W-2 wages. Wages up to $285,000	Up to 25% of W-2 wages. Wages up to $290,000
Employee + Employer combined	$57,000 ($62,000 for those age 50 and older)	$58,000 ($64,500 for those age 50 and older)
Self Employed	100% of self-employment income up to $19,500 ($26,000 for those 50 and older) PLUS up to 20% of (remaining self-employment income minus one half of SE tax) max $57,000 ($63,500 for those age 50 and older)	100% of self-employment income up to $19,500 ($26,000 for those 50 and older) PLUS up to 20% of (remaining self-employment income minus one half of SE tax) max $58,000 ($63,500 for those age 50 and older)
Catch up contributions for individuals 55 or older (but less than 65) – $1,000 Contribution limits are prorated (1/12 per month) for a partial year.