2014 401(k) and IRA Contribution Limits

The long-awaited 2014 401(k) and IRA Contribution Limits have been announced. The limits were announced on October 31, 2013. Most of the contribution limits, unfortunately, remained unchanged as the Consumer Price Index (CPI) did not increase enough to warrant an increase in 401(k) and IRA contribution limits.

The 401(k) and catch-up contribution limits will remain the same as they were in 2013. Individuals can contribute up to $17,500 towards their 401(k) in 2014. Those over the age of 50-years-old are able to contribute an additional $5,500.

The IRA contribution and catch-up contribution limit will remain the same as they were in 2013. Individuals can contribute up to $5,500 towards their IRA in 2014. Those over the age of 50-years-old are able to contribute an additional $1,000.

Another important note is that there have been some minor changes to the Roth IRA phase out. The Roth IRA phase out comes into play if your income is  $181,000-191,000 for those filing joint tax returns. An increase of $3,000 from 2013. For singles, the Roth IRA phase out comes into play if your income is $114,000-129,000. A $2,000 increase from 2013.

Please let us know if you have any questions about the new contribution limits. For more information, please see the IRS publication.

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