Retirement Savings Contribution Limits for 2021

What is the annual contribution limit for an individual under the age of 50 for an IRA in 2021?

A. $5,000

B. $6,000

C. $6,500

Answer:

The annual contribution limit for an individual under the age of 50 for an IRA in 2021 is B. $6,000.

For the tax year 2021, individuals under the age of 50 can contribute up to $6,000 to their Individual Retirement Account (IRA). This limit applies to both Traditional IRAs and Roth IRAs, allowing individuals to save for retirement while receiving potential tax benefits.

Contributing to an IRA can help individuals build their retirement savings over time, and taking advantage of the annual contribution limit ensures that you maximize your tax-advantaged savings potential. It's important to stay informed about current contribution limits and consult with a financial advisor to make the most of your retirement planning.