f you are looking to add to your retirement nest egg, you may want to know more about the contribution limits for 2014. The Internal Revenue Service (IRS) sets different contribution limits for different types of retirement accounts, and keeping up with them can be difficult, as they tend to change each year. But the good news is: If you’re 50 or older, you can make additional catch-up contributions.
Below are listed the 2014 retirement plan contribution limits. You can make contributions for 2014 until the tax filing deadline of April 15, 2015.
If you are looking to add to your retirement nest egg, you may want to know more about the contribution limits for 2014. The Internal Revenue Service (IRS) sets different contribution limits for different types of retirement accounts, and keeping up with them can be difficult, as they tend to change each year. But the good news is: If you’re 50 or older, you can make additional catch-up contributions.
Below are listed the 2014 retirement plan contribution limits. You can make contributions for 2014 until the tax filing deadline of April 15, 2015.
Traditional IRAs and Roth IRAs:
Contribution limit: $5,500
Age 50 catch-up contribution limit:
$6,500
Deferred-contribution plans, such as 401(k), 403(b), and 457 plans: Contribution limit: $17,500
Age 50 catch-up contribution limit: $23,000
Simple IRAs: Contribution limit: $12,000
Age 50 catch-up contribution limit: $14,500
Note that these are just the contribution limits; there are also income limits. For example, you can only contribute to a Roth IRA in 2014 if your adjusted gross income (AGI) is less than $129,000 if you’re single, or $191,000 if you’re married and filing jointly. The amount you are able to contribute declines gradually once your AGI exceeds $114,000 for singles, and $181,000 for couples.
Savers’ Tax Credit: Don’t forget about the Retirement Savings’ Contribution Credit (The Savers’ Credit), which is an often-overlooked tax break that provides an additional incentive to those who wish to contribute to a retirement savings account. This is in addition to any tax break you already get for contributing to a retirement plan, and essentially it allows you to also receive a credit worth 10-50 percent of up to $2,000 in your contributions to a retirement plan. It’s well worth remembering, as it can reduce your tax bill by up to $1,000.
This article is not intended to provide tax or legal advice and should not be relied upon as such. Any specific tax or legal questions should be discussed with your tax or legal advisor.