How much money will I be able to contribute to my 401(k) and IRA in 2014?
The 2014 contribution limits will remain the same as they are for 2013. You can contribute as much as $17,500 to a 401(k), 403(b), 457 or the federal government’s Thrift Savings Plan, plus as much as $5,500 more in catch-up contributions if you’re 50 or older in 2014. And the annual contribution limit for traditional and Roth IRAs remains at $5,500 in 2014, plus as much as $1,000 more if you're 50 or older.
The income limits determining who can contribute to Roth IRAs are increasing very slightly. You can contribute to a Roth IRA in 2014 only if your adjusted gross income is less than $129,000 if single or $191,000 if married filing jointly. (The amount that you can contribute starts to decline -- or phase out -- for singles earning more than $114,000 and couples earning more than $181,000. )
Sign up for Kiplinger’s Free E-Newsletters
Profit and prosper with the best of expert advice on investing, taxes, retirement, personal finance and more - straight to your e-mail.
Profit and prosper with the best of expert advice - straight to your e-mail.
The income limit defining who can claim the savers’ tax credit (officially called the Retirement Savings Contribution Credit) is also increasing slightly. To qualify for the credit, your 2014 adjusted gross income must be less than $60,000 for married couples filing jointly, less than $45,000 for heads of household, and less than $30,000 for singles or married individuals filing separately. See Take Advantage of the Retirement Savers’ Tax Credit for more information about the rules.
2014 Benefits Adjustments for Retirees
A few other inflation adjustments were announced recently: Social Security benefits will increase by 1.5% in 2014, boosting the average monthly benefit from $1,259 to $1,294. See 2014 Social Security Changes for details.
Also, Medicare Part B premiums will remain at $104.90 per month for most people in 2014, and the high-income surcharge for Part B and Part D will increase slightly. See Medicare Part B and Part D Premiums for 2014 for more information.
-
Catch-Up Contributions to Retirement Accounts Boosted By SECURE Act 2.0Americans approaching retirement age can now squirrel away more money in IRAs, 401(k)s, and other retirement accounts.
-
When RMDs Loom Large, QCDs Offer a Gratifying Tax BreakSend money directly to charity from your traditional IRA, and you won’t owe taxes on the amount you donate. It’s a win-win!
-
Save More for Retirement in 2023 Thanks to Higher IRA and 401(k) Contribution LimitsIf you're saving for retirement, you can contribute a lot more to an IRA, 401(k), or other retirement account in 2023.
-
Traditional IRA Contribution Limits for 2022traditional IRA Once again, retirement savers won’t be able to contribute more to traditional IRAs this year, but changes to how they work may be coming.
-
No Need to Panic: Social Security Is NOT Running Outsocial security Yes, Social Security is undergoing some changes, including a possible reduction in benefits in the not-too-distant future – but the checks won’t stop coming. Here’s why the program is changing and what to expect.
-
5 Year-End Moves to Help Retirees Trim Their Tax Billtaxes The end of the year is a great time to start thinking about next year's tax bill. Here are some strategies on how to reduce what you will owe Uncle Sam.
-
Trading Options for Your 401(k)Employee Benefits About 40% of companies offer self-directed brokerage accounts in their 401(k) plans, giving participants more investing options.
-
Worried About Higher Taxes in Retirement? Strategize Now.Tax Breaks With the Tax Cuts and Jobs Act expiring after 2025, it’s a good time to be proactive about taxes. Here are some smart ideas to consider to put a lid on your tax bills in retirement.
