Individual Retirement Accounts (IRAs)

Contribution LevelsRoth IRA EligibilityRoth ConversionsImportant Deadlines

Traditional & Roth IRA Contribution Levels

 

2013*

2014

Up to age 49

$5500 $5500

Age 50 and up

$6500 $6500
*This limit can be split between a traditional IRA and a Roth IRA but total contributions cannot exceed this amount. Note: The maximum deductible contribution to a traditional IRA and the maximum contribution to a Roth IRA may be reduced depending on your modified adjusted gross income.**You have until April 15, 2014 to make contributions to your IRA for 2013.

SEP IRA Contribution Levels

2013

         

2014

W-2 Income: Up to 25% of compensation, but no more than $51,000.

Self Employed: Generally up to 20%, but no more than $51,000.

         

W-2 Income: Up to 25% of compensation, but no more than $52,000. 

 

Roth IRA Eligibility

If your tax status is… …you can contribute to a Roth IRA if your modified

adjusted gross income (MAGI) is less than…

 
  2013 2014
Married, filing jointly $188,000 $191,000
Single $127,000

$129,000

For more detailed information, please visit the IRS website.

Roth Conversion Eligibility

Everyone qualifies to convert a traditional IRA or SEP IRA to a Roth IRA in 2014. There are no income restrictions.

While anyone can convert a traditional IRA to a Roth IRA, not everyone can contribute to a Roth IRA because of MAGI limits (see above).

Important IRA Deadlines for 2014

January 1, 2014
First day to contribute money to your Traditional IRA or Roth IRA for 2014.

April 15, 2014

Deadline for making Traditional IRA and Roth IRA contributions for 2013.

October 15, 2014
Deadline for re-characterizing 2013 Traditional IRA contributions, Roth IRA contributions and Roth IRA conversions.

December 31, 2014
Deadline for taking 2014 Required Minimum Distributions (RMDs). Individuals attaining age 70 ½ in 2014 may delay taking the RMD until April 1, 2015.

Deadline for distributing or transferring Traditional IRA or SIMPLE IRA assets to a Roth IRA as a 2014 conversion.

       
Share This:
Adjust Text Size:
Richmond Brothers Family Core Value: #7. Be Passionate & Determined