2014 Traditional IRA Contribution Guide

With IRS requirements being updated every year, learning the truth about your IRA contribution limits can be a difficult task. We’ve created a quick overview to help you understand how Traditional IRA contributions are changing from 2013 to 2014 for each of the three main filing categories.

Traditional IRA Contribution Limits for Single Individuals

Taxpayers filing as single individuals can make contributions to Traditional IRAs of up to $5,500 for 2013 and 2014 ($6,500 for taxpayers who have reached age 50 by the end of the taxable year). Restrictions for single individuals contributing to a Traditional IRA can be found in the list below. These restrictions also apply to individuals registered as “head of household” or of “married separate living apart” status.

• The IRA contribution cannot exceed the taxpayer’s earned income for the year.
• IRA contributions may be made as late as April 15 of the year following the year to which they pertain.
• Contributions to Traditional IRAs are fully deductible by taxpayers who are not covered by an employer-sponsored retirement plan.
• Taxpayers with income under $59,000 (2013) or $60,000 (2014) will be allowed a full tax deduction.
• Taxpayers with income between $59,000 and $69,000 (2013) or $60,000 and $70,000 (2014) will be allowed a partial tax deduction. Check with your tax advisor for exact amounts of your phase out range.
• Taxpayers with income above $69,000 (2013) or $70,000 (2014) will receive no tax deduction.
• Contributions to Traditional IRAs are allowed even if the individual is an active participant in an employer-sponsored retirement plan.

Traditional IRA Contribution Limits for Married Couples Filing Jointly

Taxpayers filing jointly as a married couple can make contributions to Traditional IRAs of up to $5,500 for 2013 and 2014 ($6,500 for taxpayers who have reached age 50 by the end of the taxable year). Restrictions for single individuals contributing to a Traditional IRA can be found in the list below.

• The IRA contribution cannot exceed the taxpayer’s earned income for the year.
• IRA contributions may be made as late as April 15 of the year following the year to which they pertain.
• Contributions to Traditional IRAs are fully deductible by taxpayers who are not covered by an employer-sponsored retirement plan.
• Taxpayers with income under $95,000 (2013) or $96,000 (2014) will be allowed a full tax deduction.
• Taxpayers with income between $95,000 and $115,000 (2013) or $96,000 and $116,000 (2014) will be allowed a partial tax deduction. Check with your tax advisor for exact amounts of your phase out range.
• Taxpayers with income above $115,000 (2013) or $116,000 (2014) will receive no tax deduction for their IRA contributions.
• Contributions to Traditional IRAs are allowed even if the individual is an active participant in an employer-sponsored retirement plan.

2014 Traditional IRA Contribution Limits for Married Couples Filing Separately

Taxpayers filing as a married couple but filing separately can make contributions to Traditional IRAs of up to $5,500 for 2013 and 2014 ($6,500 for taxpayers who have reached age 50 by the end of the taxable year). Restrictions for single individuals contributing to a Traditional IRA can be found in the list below.

• The IRA contribution cannot exceed the taxpayer’s earned income for the year.
• IRA contributions may be made as late as April 15 of the year following the year to which they pertain.
• Contributions to Traditional IRAs are fully deductible by taxpayers who are not covered by an employer-sponsored retirement plan.
• Taxpayers with income between $0 and $10,000 (2013 & 2014) will be allowed a partial tax deduction. Check with your tax advisor for exact amounts of your phase out range.
• Taxpayers with income above $10,000 (2013 & 2014) will receive no tax deduction for their IRA contributions.
• Contributions to Traditional IRAs are allowed even if the individual is an active participant in an employer-sponsored retirement plan.

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