2014 IRA Contribution Rules

The deadline to make IRA contributions for tax year 2014 is April, 15 2015.  The maximum contribution is $5,500 of earned income or $6,500 for those 50 and over.   These amounts will stay the same in 2015.

There are income limits which determine whether you can deduct your Traditional IRA contribution or if you qualify to make a Roth contribution.  The following table gives the phase-out range for the most common circumstances.

Do you qualify to deduct your   Traditional IRA contribution?

If   your income is less than the beginning of the phase-out range, you qualify.  If your income is over the phase-out range, you do not.  If your income falls inside the range, you partially qualify.

Modified   Adjusted Gross   Income  Phase-Out   Range
Single,   participates in an employer-sponsored retirement plan: $61,000-$71,000
Married (filing jointly), participates in an employer-sponsored retirement plan: $98,000-$118,000
Married (filing jointly), your spouse participates in an employer-sponsored retirement plan, but you do not: $183,000-$193,000

Do you qualify to contribute   to a Roth IRA?

Single: $116,000-$131,000
Married, filing jointly: $183,000-$193,000

If your filing status differs from those listed above, please contact your advisor and he or she can help you determine whether you qualify.

Harli Palme, CFA, CFP®
Partner

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