With the end of 2014 fast
approaching, now is the time to take a look at your year-to-date retirement
plan contributions to see where yours stand when compared with the 2014 contribution
limits.
Summary of 2014 Retirement Plan Contributions Limits
Depending on how much you’ve
already contributed, you may be able to contribute more to your retirement plan
for 2014.
To help you determine whether
you need to make some additional contributions, here is a summary of the 2014
retirement plan contributions limits. Please remember that some types of
accounts require contributions before December 31, whereas other types of
accounts allow contributions up to the April deadline for filing your tax
return. Contact us now so we can offer you specific guidance about your
account.
- The contribution limit for employees under age 50
who participate in a deferred contribution plan (401(k), 403(b), most 457
plans, or the federal government's Thrift Savings Plan) is $17,500. These
plans generally require contributions to be made on or before December 31.
- The contribution limit for employees age 50 and
over who participate in a deferred contribution plan (401(k), 403(b), most
457 plans, or the federal government's Thrift Savings Plan) is $23,000. These
plans generally require contributions to be made on or before December 31.
- The contribution limit for employees under age 50
who participate in a Savings Incentive Match Plan for Employees of Small Employers (known as a SIMPLE plan)
is $12,000. These plans generally
require “employee” contributions to be made on or before December 31 and
permit “employer” contributions to be made up to the filing deadline of
your tax return on April 15.
- The contribution limit for employees age 50 and
over who participate in a Savings Incentive Match Plan for Employees of Small Employers (known as a SIMPLE plan)
is $14,500. These plans generally require “employee” contributions to be
made before December 31 and permit “employer” contributions to be made up
to the filing deadline of your tax return on April 15.
- The contribution limit for a Simplified Employee
Pension Individual Retirement Account (i.e., SEP IRA) or Solo 401(k) is
the lesser of (a) $52,000, or (b) 25% of the employee’s salary, and the
compensation limit used in the savings calculation is $260,000. These
plans generally permit contributions up to the filing deadline of your tax
return on April 15.
- The contribution limit for individuals under age
50 to a traditional or Roth Individual Retirement Account (IRA) is $5,500. These plans generally permit
contributions up to the filing deadline of your tax return on April 15.
- The contribution limit for individuals age 50 and
over to a traditional or Roth Individual Retirement Account (IRA) is
$6,500. These plans generally
permit contributions up to the filing deadline of your tax return on April
15.
- While contributions to IRAs that apply to the
2014 tax year can be made up until April 15, 2015, the time is now to make
contributions so that you can maximize your earnings inside the account.
- Before you make any contributions to a Roth IRA, make sure you’re not subject to the adjusted gross income (AGI) phase-out. If your income is greater than AGI phase-out amount for your filing status, then you’re not eligible to make contributions to a Roth IRA. The AGI phase-out amounts for taxpayers making contributions to a Roth IRA is $181,000 to $191,000 for married taxpayers filing jointly; $114,000 to $129,000 for single taxpayers and head of household taxpayers; and for a married taxpayer filing a separate return, the phase-out is not subject to an annual cost-of-living adjustment and is therefore $0 to $10,000. We can help you determine which phase-out, if any, applies to your situation.

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