Deductible, Nondeductible, and Roth IRA $5,500 (Indexed in Contribution Limits $5,000 $5,500 Sec. 219(b)(1)(A).This is the limit on how much $500 can be contributed to an IRA. increments) IRA Catch-Up Provision for Individuals 50 or Older by year end $6,500 Sec. 219(a)(5)(B).This is the amount that can be (Indexed in $6,000 $6,500 contributed for those 50 and older by year end. The $500 catch up is $1,000 in 2013. The listed number is increments) the total amount that can be contributed. 2014 IRA Phaseout Limits for Active Participants in a Qualified Plan (Modified Adjusted Gross Income (MAGI)) Contributions to Traditional IRAs: Sec. 219(g)(3)(B) 2012 2013 2014 Filing Status Phaseout of Deduction Begins $92,000 $95,000 $96,000 Married filing jointly Ends (i.e. no deduction) $112,000 $115,000 $116,000 Begins $58,000 $59,000 $60,000 Single & HOH Ends $68,000 $69,000 $70,000 Begins $0 $0 $0 Married Filing Separately Ends $10,000 $10,000 $10,000 Begins $173,000 $178,000 $181,000 Nonworking spouse Ends $183,000 $188,000 $191,000 What this means: If a single-filing taxpayer participates in a qualified plan at work and earns less than $60,000 in 2014, he may use the full $5,500 IRA deduction. Once he earns more than $60,000, his deduction is phased out until he reaches $70,000, at which point he would no longer be entitled to an IRA deduction. Contributions to Roth IRAs: Sec. 408A(c)(3)
Deductible, Nondeductible, and Roth IRA Contribution Limits Sec. 219(b)(1)(A).This is the limit on how much can be contributed to an IRA. $5,000 $5,500 $5,500 (Indexed in $500 increments) IRA Catch-Up Provision for Individuals 50 or Older by year end Sec. 219(a)(5)(B).This is the amount that can be contributed for those 50 and older by year end. The catch up is $1,000 in 2013. The listed number is the total amount that can be contributed. $6,000 $6,500 $6,500 (Indexed in $500 increments) 2014 IRA Phaseout Limits for Active Participants in a Qualified Plan (Modified Adjusted Gross Income (MAGI)) Contributions to Traditional IRAs: Sec. 219(g)(3)(B) Filing Status Phaseout of Deduction 2012 2013 2014 Married filing jointly Begins $92,000 $95,000 $96,000 Ends (i.e. no deduction) $112,000 $115,000 $116,000 Single & HOH Begins $58,000 $59,000 $60,000 Ends $68,000 $69,000 $70,000 Married Filing Separately Begins $0 $0 $0 Ends $10,000 $10,000 $10,000 Nonworking spouse Begins $173,000 $178,000 $181,000 Ends $183,000 $188,000 $191,000 What this means: If a single-filing taxpayer participates in a qualified plan at work and earns less than $60,000 in 2014, he may use the full $5,500 IRA deduction. Once he earns more than $60,000, his deduction is phased out until he reaches $70,000, at which point he would no longer be entitled to an IRA deduction. Contributions to Roth IRAs: Sec. 408A(c)(3)