Retirement Plan Contribution Limits for 2014

The IRS has announced the contribution limits for qualified retirement plans and IRAs for 2014. Due to low inflation, most limits remain unchanged from 2013 limits, for example, limits for contributions to qualified retirement plans and IRAs. Elective deferrals to 401(k) plans remain at $17,500 (plus $5,500 for those 50 and older). IRA and Roth IRA contributions are capped at $5,500 (plus $1,000 for those 50 and older).

However, the deduction for Simplified Employee Pension (SEP) contributions rises to $52,000 (up from $51,000 in 2013). Also increased are the modified adjusted gross income limits for making deductible IRA contributions by those who are active participants in qualified retirement plans and for making nondeductible Roth IRA contributions. Also, the adjusted gross income limits for the retirement savers’ credit have been increased for 2014.

Source: IR-2013-86