The 2021 contribution limit for a SIMPLE IRA is $13,500 for employees and self-employed individuals ($16,500 if you’re age 50 or older). This is unchanged from 2020. In 2019, the SIMPLE IRA contribution limit was $13,000, and $16,000 if you were age 50 or older.
Also know, what is the major limitation of a simple retirement plan?
The contribution limits for SIMPLE IRA plans are lower than other workplace retirement plans. In 2020 and 2021, employees and solo business owners under age 50 are allowed to contribute $13,500 in a SIMPLE IRA per year versus $19,500 in a 401(k), and $16,500 versus $26,000 for those age 50 and up.
People also ask, what is the maximum contribution to a simple plan?
$13,500
Similarly, what is the simple IRA contribution limit for 2021?
$13,500