taxes

Retirement plan contribution limits

Taxes » Investment Taxes » Retirement Plan Contribution Limits

The IRS 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 2014 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, 2015. We provide the 2015 amounts to help in your retirement planning.

Limit on contributions

Plan type2014 limits2015 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
$18,000
$24,000
SIMPLE plans
Under age 50
Age 50 and older
$12,000
$14,500
$12,500
$15,500
Retirement plan saver's tax credit (subject to income limits)$1,000$1,000
Social Security wage base$117,000$118,500

Traditional IRA deduction limits

Deductions for traditional IRAs are phased out based on your income and whether you or your spouse, if you file jointly, are covered by a workplace retirement plan.

In 2014, the IRA deduction phaseout income range for single and head-of-household taxpayers who are covered by a workplace retirement plan is $60,000 to $70,000.

In 2015, the phaseout range is $61,000 to $71,000 for single and head-of-household filers.

For married couples filing jointly in 2014 and where the spouse making the traditional IRA contribution is covered by a workplace retirement plan, the income phaseout range is $96,000 to $116,000. For an IRA contributor who is not covered by a workplace retirement plan and is married to someone who is covered, the 2014 deduction is phased out if the couple's combined income is between $181,000 and $191,000.

For the 2015 tax year, jointly filing married couples where the spouse making the traditional IRA contribution is covered by a workplace retirement plan will see the IRA deduction phased out if their income is between $98,000 and $118,000. In 2015, for an IRA contributor who is not covered by a workplace retirement plan and is married to someone who is covered, the deduction is phased out when the couple's joint income is between $183,000 and $193,000.

Roth IRA contribution earning limits

In 2014, the phaseout range of income limits for making a Roth IRA contribution was between $181,000 and $191,000 for jointly filing married couples; and $114,000 to $129,000 for single taxpayers.

If your income falls in those ranges for your filing status, the amount you can contribute to a Roth IRA is reduced. Make more than the top income amount in each range and you cannot put any money into a Roth IRA.

For the 2015 tax year, the Roth IRA income contribution ranges are increased a bit. Married couples filing jointly face the phaseouts when their income is between $183,000 and $193,000. The earning range for single taxpayers is $116,000 to $131,000.

No Roth conversion limits

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 nondeductible traditional IRA and then roll that IRA money into a Roth.

Saver's credit income limits

Some filers may be able to claim the saver's credit, also known as the retirement savings contributions credit, but only if they don't make too much money.

This tax break for low- and moderate-income workers can be claimed on 2014 tax returns as long as a single filer's income is no more than $30,000; no more than $45,000 for a head of household; or no more than $60,000 for married couples filing jointly.

For the 2015 tax year, the saver's credit is available to single taxpayers with income up to $30,500; head-of-household filers making up to $45,750; or jointly filing married taxpayers with income up to $61,000.

advertisement

Show Bankrate's community sharing policy
          Connect with us
advertisement
Tax breaks for life's big events
REFINANCE HOME EQUITY AUTO CDs CREDIT CARDS
Product Rate Change Last week
30 year fixed refi 4.01%  0.08 3.93%
15 year fixed refi 3.10%  0.04 3.14%
10 year fixed refi 3.13%  0.08 3.21%
 
View Rates in your area Next
Product Rate Change Last week
30K FICO-based HELOC 4.56%  0.06 4.62%
50K FICO-based HELOC 4.07% --0.00 4.07%
100K FICO-based HELOC 3.83% --0.00 3.83%
 
View Rates in your area Next
Product Rate Change Last week
60 month used car loan 2.92% --0.00 2.92%
48 month used car loan 2.79% --0.00 2.79%
60 month new car loan 3.05% --0.00 3.05%
 
View Rates in your area Next
Product Rate Change Last week
1 Year CD 1.04%  0.04 1.08%
2 Year CD 1.17%  0.01 1.18%
5 Year CD 1.70%  0.04 1.74%
 
View Rates in your area Next
Product Rate Change Last week
Balance Transfer Cards 15.88% --0.00 15.88%
Cash Back Cards 16.43% --0.00 16.43%
Low Interest Cards 11.03% --0.00 11.03%
 
Next
advertisement

Connect with us