As we chug through November, I want to continue looking ahead to 2014. So let’s talk a bit about IRA contribution limits.
According to the IRS, the 2014 contribution limits for traditional and Roth IRAs will remain unchanged from 2013 levels.
That means you can contribut a max of $5,500/year in 2014. For participants who are at least 50 years old, the “catch-up” contribution likewise remains unchanged at an additional $1,000/year.
Please note that these are combined limits. Thus, you can contribute a combined maximum of $5,500/year (or $6,500/year if you’re 50+) to traditional and/or Roth IRAs — i.e., you can’t contribute the max to both.
Please also note that your contributions cannot exceed your taxable compensation for the year, though an exception is made for non-working spouses…
Assuming that the couple files jointly, the non-working spouse is allowed to fund a so-called “spousal IRA”.
As I did for the 401(k), 403(b), and 457(b) contribution limits, I though it might also be useful to provide some historical perspective. Here are the traditional and Roth IRA contribution limits going all the way back to 2005.
As with our other retirement accounts, we’re already contributing the max to our IRAs so we’ll be holding steady in 2014.
Finally, please note that: these limits apply to new contributions and not to rollovers, your ability to deduct traditional IRA contributions is limited by income, and your ability to contribute to a Roth IRA is also limited by income.