How much money will I be able to contribute to my 401(k) and IRA in 2014?
The 2014 contribution limits will remain the same as they are for 2013. You can contribute as much as $17,500 to a 401(k), 403(b), 457 or the federal government's Thrift Savings Plan, plus as much as $5,500 more in catch-up contributions if you're 50 or older in 2014. And the annual contribution limit for traditional and Roth IRAs remains at $5,500 in 2014, plus as much as $1,000 more if you're 50 or older.
The income limits determining who can contribute to Roth IRAs are increasing very slightly. You can contribute to a Roth IRA in 2014 only if your adjusted gross income is less than $129,000 if single or $191,000 if married filing jointly. (The amount that you can contribute starts to decline -- or phase out -- for singles earning more than $114,000 and couples earning more than $181,000. )
The income limit defining who can claim the savers' tax credit (officially called the Retirement Savings Contribution Credit) is also increasing slightly. To qualify for the credit, your 2014 adjusted gross income must be less than $60,000 for married couples filing jointly, less than $45,000 for heads of household, and less than $30,000 for singles or married individuals filing separately. See Take Advantage of the Retirement Savers' Tax Credit for more information about the rules.
2014 Benefits Adjustments for Retirees
A few other inflation adjustments were announced recently: Social Security benefits will increase by 1.5% in 2014, boosting the average monthly benefit from $1,259 to $1,294. See 2014 Social Security Changes for details.
Also, Medicare Part B premiums will remain at $104.90 per month for most people in 2014, and the high-income surcharge for Part B and Part D will increase slightly. See Medicare Part B and Part D Premiums for 2014 for more information.