| YEAR | CONTRIBUTION | CONTRIBUTION IF OVER THE AGE OF 50 | DEADLINE TO OPEN IRA | DEADLINE TO CONTRIBUTE TO IRA |
|---|---|---|---|---|
| 2020 | $57,000 | – | Employer’s Tax Filing Deadline (plus extensions) | Employer’s Tax Filing Deadline (plus extensions) |
| 2021 | $58,000 | – | Employer’s Tax Filing Deadline (plus extensions) | Employer’s Tax Filing Deadline (plus extensions) |
Key Features:
- Easy to set up and operate
- Low administrative costs
- Flexible annual contributions
- Employer must contribute equally for all eligible employees
- Maximum contribution per participant is the lesser of 25% of the employee’s compensation (20% if self-employed) OR $58,000 for 2021 ($57,000 for 2020)