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Retirement Contribution Limits for 2014

Retirement Tax Planning

Erin Nelsen, CFP®

Friday, 04 April 2014

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The Kiplinger Letter published a great summary of the changes to Retirement Contribution Limits and it is below:

“Several dollar ceilings on retirement plans are heading up this year:

The pay in limitation for defined contribution plans increases to $52,000. That’s a $1,000 hike for Keogh plans, profit sharing plans, and similar arrangements.
Retirement plan contributions can be based on up to $260,000 of salary.
And the benefit limit for pension plans is rising to $210,000 in 2014.
The income ceilings on Roth IRA pay ins go up. Contributions phase out at AGIs of $181,000 to $191,000 for couples and $114,000 to $129,000 for singles.
The deduction phase outs for pay ins to regular IRAs start at higher levels, from AGIs of $96,000 to $116,000 for couples and $60,000 to $70,000 for singles. If only one spouse is covered by a plan, the phase out zone for deducting a contribution for the uncovered spouse begins at $181,000 of AGI and finishes at $191,000.
And the partial credit for retirement plan pay ins phases out at higher levels. For marrieds…at over $60,000. Household heads…$45,000. Singles…$30,000.

Several key items won’t change. The 401(k) pay in limit remains $17,500. Folks born before 1965 can put in an extra $5,500. Ditto for 403(b) and 457 plans. The ceiling on SIMPLEs stays $12,000…$14,500 for folks age 50 or older this year. Pay in caps for IRAs and Roths remain $5,500 plus $1,000 for anyone 50 and up this year.”

The Kiplinger Letter January 3, 2014

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About the author

Erin Nelsen, CFP®

Call 714-827-5794 to make a free consulation with Erin

Erin Nelsen, CFP^®is a fee-only fiducary Financial Advisor that manages portfolios & conducts hourly financial planning for Asset Planning. Erin holds the CERTIFIED FINANCIAL PLANNER ™ & Registered Investment Advisor Representative professional designations. Erin has expertise in various financial planning areas such as investments, taxes, estate divisions, public and private pension options, Social Security, real estate, insurance analysis, recent widow planning, and many other complex financial issues that arise. Erin has been with Asset Planning since April 2007. Erin is thankful to have found her perfect forever firm. Asset Planning holds a high standard of care for both its clients and staff, and everyone is truly valued as family.

An Orange County native, Erin earned her Bachelor of Arts in Business Administration with a concentration in Finance from Cal State Fullerton. Erin completed the Personal Financial Program at CSUF. Erin is an active member of the Orange County Financial Planning Association and has been a volunteer teacher of personal finance to elementary kids through the community outreach program Junior Achievement.

Erin Nelsen is a Fee-Only Financial Advisor and a member of NAPFA, the largest Fee-Only Network Financial Planners. Fee-Only means Erin is only compensated directly by her clients & does not sell products nor accept commissions for the investments she recommends. Erin is proud to have built her career solely on the independent Fee-Only side of the Wealth Management industry. Erin is among an elite group of Financial Advisors held to the Fiduciary Standard. As a Fiduciary, she is required to put a client's interest above her own. Ethical, appropriate, & skilled professional care is our solid promise to all clients.

When Erin is not at the job she loves, she is busy tending to her garden, caring for her family, attending concerts, traveling, floating in her pool, or scouting out new restaurants to try with her husband/college sweetheart of 18 years. Erin's household is blessed with a son, daughter (both in college), two nephews (orphaned), a Sheltie dog, & two royal cats that rule her household.

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Retirement Contribution Limits for 2014

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Erin Nelsen, CFP®

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