2013 IRA Contribution Rules

The deadline to make IRA contributions for tax year 2013 is April, 15 2014.  The maximum contribution is $5,500 of earned income or $6,500 for those 50 and over.   These amounts will stay the same in 2014.

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 $59,000-$69,000
Married,   participates in an employer-sponsored retirement plan $95,000-$115,000
Married,   your spouse participates in an employer-sponsored retirement plan, but you do   not. $178,000-$188,000
 
Do you qualify to contribute   to a Roth IRA?
Single $112,000-$127,000
Married,   filing jointly $178,000-$188,000

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 L. Palme, CFA, CFP®

Partner

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