2014 Traditional & Roth IRA Contribution Limits

by Michael on Nov 13, 2013 · 2 comments

Image of IRA Nest Egg

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.

Year Limit Catch-up
2005 $4,000 $500
2006 $4,000 $1,000
2007 $4,000 $1,000
2008 $5,000 $1,000
2009 $5,000 $1,000
2010 $5,000 $1,000
2011 $5,000 $1,000
2012 $5,000 $1,000
2013 $5,500 $1,000
2014 $5,500 $1,000

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.

1 krantcents November 13, 2013 at 7:29 pm

Thanks for the information although I wish it was increased.

2 thepotatohead November 20, 2013 at 12:13 am

I was just able to max my 401k contributions last year, so now i’m slowly working on maxing a roth IRA in the coming years. I went with the 401k first because it was the easiest to do, just funneled straight from the paycheck into the 401k before it even hits a bank account. This may not be the best strategy in terms of pure financial sense, but hopefully it wont take too long to max the Roth, then it wont matter either way.

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