IRA and Retirement Plan
Limits for 2014
IRA contribution limits
The maximum
amount you can contribute to a traditional IRA or Roth IRA in 2014 remains
unchanged at $5,500 (or 100% of your earned income, if less). The maximum
catch-up contribution for those age 50 or older in 2014 is $1,000, also
unchanged from 2013. (You can contribute to both a traditional and Roth IRA in
2014, but your total contributions can't exceed this annual limit.)
Traditional IRA deduction limits for
2014
The income limits
for determining the deductibility of traditional IRA contributions have
increased for 2014 (for those covered by employer retirement plans). For
example, you can fully deduct your IRA contribution if your filing status is
single/head of household, and your income ("modified adjusted gross
income," or MAGI) is $60,000 or less (up from $59,000 in 2013). If you're
married and filing a joint return, you can fully deduct your IRA contribution
if your MAGI is $96,000 or less (up from $95,000 in 2013). If you're not
covered by an employer plan but your spouse is, and you file a joint return,
you can fully deduct your IRA contribution if your MAGI is $181,000 or less (up
from $178,000 in 2013).
If your 2014 federal income tax filing status is: | Your IRA deduction is reduced if your MAGI is between: | Your deduction is eliminated if your MAGI is: |
---|---|---|
Single or head of household | $60,000 and $70,000 | $70,000 or more |
Married filing jointly or qualifying widow(er)* | $96,000 and $116,000 (combined) | $116,000 or more (combined) |
Married filing separately | $0 and $10,000 | $10,000 or more |
*If you're not
covered by an employer plan but your spouse is, your deduction is limited if
your MAGI is $181,000 to $191,000, and eliminated if your MAGI exceeds $191,000.
Roth IRA contribution limits for 2014
The income limits
for Roth IRA contributions have also increased. If your filing status is
single/head of household, you can contribute the full $5,500 to a Roth IRA in
2014 if your MAGI is $114,000 or less (up from $112,000 in 2013). And if you're
married and filing a joint return, you can make a full contribution if your
MAGI is $181,000 or less (up from $178,000 in 2013). (Again, contributions
can't exceed 100% of your earned income.)
If your 2014 federal income tax filing status is: | Your Roth IRA contribution is reduced if your MAGI is between: | You cannot contribute to a Roth IRA if your MAGI is: |
---|---|---|
Single or head of household | $114,000 and $129,000 | $129,000 or more |
Married filing jointly or qualifying widow(er) | $181,000 and $191,000 (combined) | $191,000 or more (combined) |
Married filing separately | $0 and $10,000 | $10,000 or more |
Employer retirement plans
The maximum
amount you can contribute (your "elective deferrals") to a 401(k)
plan in 2014 remains unchanged at $17,500. The limit also applies to 403(b),
457(b), and SAR-SEP plans, as well as the Federal Thrift Savings Plan. If
you're age 50 or older, you can also make catch-up contributions of up to
$5,500 to these plans in 2014 (unchanged from 2013). (Special catch-up limits
apply to certain participants in 403(b) and 457(b) plans.)
If you
participate in more than one retirement plan, your total elective deferrals
can't exceed the annual limit ($17,500 in 2014 plus any applicable catch-up
contribution). Deferrals to 401(k) plans, 403(b) plans, SIMPLE plans, and
SAR-SEPs are included in this limit, but deferrals to Section 457(b) plans are
not. For example, if you participate in both a 403(b) plan and a 457(b) plan,
you can defer the full dollar limit to each plan--a total of $35,000 in 2014
(plus any catch-up contributions).
Plan type: | Annual dollar limit: | Catch-up limit: |
---|---|---|
401(k), 403(b), governmental 457(b), SAR-SEP, Federal Thrift Savings Plan | $17,500 | $5,500 |
SIMPLE plans | $12,000 | $2,500 |
Note: Contributions can't exceed 100% of your income.
The maximum
amount that can be allocated to your account in a defined contribution plan
(for example, a 401(k) plan or profit-sharing plan) in 2014 is $52,000 (up from
$51,000 in 2013), plus age-50 catch-up contributions. (This includes both your
contributions and your employer's contributions. Special rules apply if your
employer sponsors more than one retirement plan.)
IMPORTANT
DISCLOSURESBroadridge Investor Communication Solutions, Inc. does not provide
investment, tax, or legal advice. The information presented here is not
specific to any individual's personal circumstances.To the extent that this
material concerns tax matters, it is not intended or written to be used, and
cannot be used, by a taxpayer for the purpose of avoiding penalties that may be
imposed by law. Each taxpayer should
seek independent advice from a tax professional based on his or her individual
circumstances.These materials are provided for general information and
educational purposes based upon publicly available information from sources
believed to be reliable—we cannot assure the accuracy or completeness of these
materials. The information in these
materials may change at any time and without notice.
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