Plan Your 2014 Retirement Contributions

As part of your planning for next year, now is the time to review funding your retirement accounts. By establishing your contribution amounts at the beginning of each year, the financial impact of saving for your future should be more manageable. Here are annual contribution limits for the more popular programs:

Retirement
Program		 2014 2013 Change Age 50 or over
to catch up
IRA: Traditional $5,500 $5,500 none add: $1,000
IRA: Roth $5,500 $5,500 none add: $1,000
IRA: Simple $12,000 $12,000 none add: $2,500
401(k), 403(b), 457 plans $17,500 $17,500 none add: $5,500

Take action

If you have not already done so, please consider:

  • reviewing and adjusting your periodic contributions to your retirement savings accounts to take full advantage of the tax advantaged limits
  • setting up new accounts for a spouse or dependent(s)
  • using this time as a chance to review the status of your retirement plan
  • reviewing contributions to other tax-advantaged plans like Flexible Spending Accounts (health care and dependent care) and pre-paid medical savings plans like HSAs (Health Savings Accounts)

While the annual limits did not go up for these plans in 2014, it is still a good idea to review your funding plans for your retirement.

On January 2, 2014   /   Tax News, Tax Tips