taxes

Retirement plan contribution limits

Taxes » Investment Taxes » Retirement Plan Contribution Limits

The Internal Revenue Service has different contribution limits for different types of retirement accounts, and keeping up with them can be challenging. If you are 50 or older, you are eligible to make additional catch-up contributions, adding to the confusion.

Below are the limits on 2013 retirement plan contributions for various plan types. You can make contributions for individual retirement accounts, or IRAs, all the way up to the tax filing deadline of April 15, 2014. We provide the 2014 amounts to help in your retirement planning.

Limit on contributions

Plan type2013 limits2014 limits
IRA, traditional and Roth
Under age 50
Age 50 and older
$5,500
$6,500
$5,500
$6,500
Deferred contribution plans, e.g., 401(k), 403(b) and 457 plans
Under age 50
Age 50 and older
$17,500
$23,000
$17,500
$23,000
SIMPLE plans
Under age 50
Age 50 and older
$12,000
$14,500
$12,000
$14,500
Retirement plan saver's tax credit (subject to income limits)$1,000$1,000
Social Security wage base$113,700$117,000

In 2012, the maximum income limits for Roth IRA contributions increased a bit, going to $183,000 for married couples filing jointly and $125,000 for single taxpayers. For the 2013 tax year, the income limits are bumped up again at $188,000 for married couples and $127,000 for single taxpayers.

In 2013, the maximum income limits for Roth IRA contributions increased a bit, going to $188,000 for married couples filing jointly and $127,000 for single taxpayers. For the 2014 tax year, the top income limits are bumped up again, to $191,000 for jointly filing married couples and $129,000 for single taxpayers.

Individuals who want to convert a traditional IRA to a Roth account no longer face the $100,000 income limit. This law change means that even if you earn too much to contribute to a Roth IRA, you can contribute to a traditional IRA and then roll that traditional IRA money into a Roth.

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