Financial planning, career development and investing information - Money-Zine.com

IRA Contribution Limits

In this article, we're going to discuss IRA contribution limits, which will include the recent changes for 2013 and 2014.  We will also address two important IRA limits: one relating to household income, and a second dealing with the dollar value of the contributions themselves.

IRA Contributions

For many years, the contribution limit for an IRA stood at $2,000, but policymakers realized inflation made this old limit inadequate in meeting the retirement planning needs of individuals.  In this article, we've updated information on the 2013 and 2014 limits.  We will even discuss the catch-up limit that can help accountholders to get money into their IRA faster.

Additional Resources

In the sections below, we are going to separate the IRA contribution limits for Traditional IRAs, Roth IRAs, and SIMPLE IRAs as needed.  If we don't specifically identify the limit or contribution rule for a particular program, then it's safe to assume the commentary applies to all three.

IRA Contribution Limits for 2014

In 2014, the contribution limits for Traditional IRAs and Roth IRAs is $5,500.  Anyone reaching the age of 50 before the end of the calendar year is entitled to an additional catch-up contribution of $1,000.  That brings the total contribution limit to $6,500 for anyone age 50 or older by the end of 2014.

Traditional IRA Income Limits for 2014

In 2014, the modified adjusted gross income or MAGI contribution limits for Traditional IRAs were raised.  Accountholders covered by a retirement plan at work will have their tax-deductible contribution to a Traditional IRA phased-out if:

  • Their filing status is married filing jointly, and their AGI is more than $96,000 but less than $116,000.
  • Their filing status is single or head of household, and their AGI is more than $60,000 but less than $70,000.

The deductible phase-out starts at under $10,000 for taxpayers with a tax filing status of married filing separate returns.

Roth IRA Income Limits in 2014

In 2014, the following income limit rules apply to Roth IRAs:

  • Single filers with modified adjusted gross income up to $114,000 can make a full contribution.  If their adjusted gross income is in excess of $129,000, they cannot make a contribution to a Roth IRA.
  • Joint filers with modified adjusted gross income up to $181,000 can make a full contribution.  If their adjusted gross income is in excess of $190,000, they cannot make a contribution to a Roth IRA in 2014.

IRA Contribution Limits for 2013

In 2013, the contribution limits for Traditional IRAs and Roth IRAs is $5,500.  Anyone reaching the age of 50 before the end of the calendar year is entitled to an additional catch-up contribution of $1,000.  That brings the total contribution limit to $6,500 for anyone age 50 or older by the end of 2013.

Traditional IRA Income Limits for 2013

In 2013, the modified adjusted gross income or AGI contribution limits for Traditional IRAs were raised.  Accountholders covered by a retirement plan at work will have their tax-deductible contribution to a Traditional IRA phased-out if:

  • Their filing status is married filing jointly, and their AGI is more than $95,000 but less than $115,000.
  • Their filing status is single or head of household, and their AGI is more than $59,000 but less than $69,000.

The deductible phase-out starts at under $10,000 for taxpayers with a tax filing status of married filing separate returns.

Roth IRA Income Limits in 2013

In 2013, the following income limit rules apply to Roth IRAs:

  • Single filers with modified adjusted gross income up to $112,000 can make a full contribution.  If their adjusted gross income is in excess of $127,000, they cannot make a contribution to a Roth IRA.
  • Joint filers with modified adjusted gross income up to $178,000 can make a full contribution.  If their adjusted gross income is in excess of $188,000, they cannot make a contribution to a Roth IRA in 2013.

SIMPLE IRA Contribution Limits in 2013 and 2014

In 2013, the employer salary-reduction contribution increases to $12,000.  For workers that are age 50 and older, their employer can make additional "catch up" contributions of $2,500, bringing the total contribution limit in 2013 for SIMPLE IRAs to $14,500.  In 2014, the employer salary-reduction contribution remains at $12,000, as does the total contribution limit of $14,500.

Current IRA Contribution Limits

In the sections below, we have translated the above information into several tables that provide an "at a glance" look at contribution and income limits for IRAs.  These tables only apply to Roth IRAs and Traditional IRAs.  Most SIMPLE plans are administered by an employer and rules may vary.

Roth and Traditional IRA Contribution Limits (2006 to 2014)

 Year  Standard Contribution With Catch-Up Contribution
2006 - 2007 $4,000 $5,000
2008 - 2012 $5,000 $6,000
2013 $5,500 $6,500
2014 $5,500 $6,500
2015 Indexed with Inflation  

2014 Traditional IRA AGI Deduction Limits
(If Covered by a Retirement Plan at Work)

 Filing Status  Full Deduction  Phase-Out  No Deduction
 Single, head of household  $60,000 or less  $60,000 - $70,000  $70,000 or more
 Married filing jointly  $96,000 or less  $96,000 - $116,000  $116,000 or more
 Married filing separately    Less than $10,000  $10,000 or more

2013 Traditional IRA AGI Deduction Limits
(If Covered by a Retirement Plan at Work)

 Filing Status  Full Deduction  Phase-Out  No Deduction
 Single, head of household  $59,000 or less  $59,000 - $69,000  $69,000 or more
 Married filing jointly  $95,000 or less  $95,000 - $115,000  $115,000 or more
 Married filing separately    Less than $10,000  $10,000 or more

2014 Traditional IRA AGI Deduction Limits
(If NOT Covered by a Retirement Plan at Work)

 Filing Status  Full Deduction  Phase-Out  No Deduction
 Single, head of household  No Limit  No Limit  No Limit
 Married filing jointly (spouse not covered)  No Limit  No Limit  No Limit
 Married filing jointly (spouse covered)  $181,000 or less  $191,000 - $190,000  $190,000 or more
 Married filing separately (spouse covered)    Less than $10,000  $10,000 or more

2013 Traditional IRA AGI Deduction Limits
(If NOT Covered by a Retirement Plan at Work)

 Filing Status  Full Deduction  Phase-Out  No Deduction
 Single, head of household  No Limit  No Limit  No Limit
 Married filing jointly (spouse not covered)  No Limit  No Limit  No Limit
 Married filing jointly (spouse covered)  $178,000 or less  $178,000 - $188,000  $188,000 or more
 Married filing separately (spouse covered)    Less than $10,000  $10,000 or more

2014 Roth IRA Income Limits

Filing Status Full Contribution Contribution Phased-Out No Contributions
Single Filers $114,000 $114,000 - $129,000 $129,000 or more
Joint filers $181,000 $181,000 - $191,000 $191,000 or more

2013 Roth IRA Income Limits

Filing Status Full Contribution Contribution Phased-Out No Contributions
Single Filers $112,000 $112,000 - $127,000 $127,000 or more
Joint filers $178,000 $178,000 - $188,000 $188,000 or more

The above information is detailed in our articles on Traditional IRA Rules and Roth IRA Contribution Limits.


About the Author - IRA Contribution Limits

Copyright © 2006 - 2013 Money-Zine.com


Money-Zine.com copyright 2004 - 2014