Tax Advice Santa Rosa – IRS RETIREMENT PLAN ADJUSTMENTS FOR 2014

December 2nd, 2013 → 10:48 pm @ // No Comments

Rules changes for IRAs, 401(k)s & other savings vehicles.

The IRS has made minor adjustments to retirement plan limitations for 2014. As inflation has been tame in 2013, these COLAs aren’t dramatic; as a result, some retirement plans won’t see any next year. Here is a roundup of the changes for 2014.

IRAs. Not much change here: the 2014 contribution limit is still set at $5,500, with an additional $1,000 catch-up contribution permitted for those 50 and older.

The AGI phase-out ranges affecting your ability to deduct traditional IRA contributions have been slightly adjusted north:

* Single & head-of-household filers covered by a workplace retirement plan: $60,001-70,000
* Married filing jointly, you contribute to a workplace retirement plan: $96,001-116,000
* Married filing jointly, spouse contributes to workplace plan, you don’t: $181,001-191,000.

The limits on eligibility to make Roth IRA contributions have been adjusted. You can make a full Roth contribution in 2014 if your adjusted gross income does not exceed these limits:

* Single & head-of-household filers: $114,000 (phase-out range is $114,001-129,000)
* Married filing jointly: $181,000 (phase-out range is $181,001-191,000)

401(k)s, 403(b)s, most 457 plans & the federal Thrift Savings Plan. Contribution limits on these plans are unchanged for 2014. You will …Read More


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