2014 Retirement Figures Released

IRA plans will maintain their 2013 annual contribution limits of $5,500 for 2014. The good news is that the phase-outs for both deductible IRAs, as well as Roth IRAs will increase. For deductible IRAs for Individual filers covered by a workplace retirement plan to have an additional $1,000 of income. Phase-outs for 2014 will begin at $60,000 and end at $70,000, which is up from the 2013 range of $59,000 to $69,000. For Married Filing Joint filers, where both spouses are covered by a workplace retirement plan the phase-out range also increases by $1,000, from $95,000 – $115,000 in 2013, to $96,000 – $116,000 in 2014. If only one spouse is covered by a workplace plan, the phase-out range increases by $3,000, from $178,000 – $188,000 in 2013 to $181,000 – $191,000 in 2014.

For Roth IRA contributions, the phase-out range increases by $3,000 for Married Filing Joint filers, from $178,000 – $188,000 in 2013 to $181,000 – $191,000 in 2014. For single filers, the increase is only $2,000, from $112,000 – $127,000 in 2013, to $114,000 – $129,000 in 2014.

Remember – You can still contribute to an IRA if your income exceeds the phase-out range, but your contribution is no longer deductible. If you are interested in opening a Roth IRA, but exceed the phase-out range, you can still contribute to a non-deductible IRA and then convert it to a Roth IRA.

Whatever your situation is, it is always important to save as much as you can for retirement. If you have questions about which savings method is right for you, you should consult with your financial professional to find out the best plan for your situation.