CCH Logo
Contact Us | CCH Online Store | Site Map    

  
navigation tabnavigation tab Home 
navigation tabnavigation tab About Us 
navigation tabnavigation tab Order Products 
navigation tabnavigation tab Press Center 
navigation tabnavigation tab Customer Service 
navigation tabnavigation tab Career Opportunities 
navigation tab
   Home
 

Wolters Kluwer, CCH can assist you with stories, including interviews with subject experts.
Also, the 2014 Whole Ball of Tax is available in print. Please contact:
 
Eric Scott
(847) 267-2179
eric.scott@wolterskluwer.com
 
Brenda Au
(847) 267-2046
brenda.au@wolterskluwer.com

Visit the Whole Ball of Tax site often as new releases and other updates will be posted
throughout the tax season.

Wolters Kluwer, CCH provides special CCH Tax Briefings on key topics at: CCHGroup.com/Legislation.

 
2014 CCH Whole Ball of Tax
Release (21) | Back to WBOT

2014 Wolters Kluwer, CCH Whole Ball of Tax

Contact:
Eric Scott , 847-267-2179, eric.scott@wolterskluwer.com
Brenda Au , 847-267-2046, brenda.au@wolterskluwer.com

Retirement By the Numbers: Employer Plans, IRAs and the Saver's Credit

Saving Opportunities Remain the Same Across Retirement Plans for 2014

Both IRA contribution levels and contribution limits to employer-sponsored programs are subject to cost of living adjustments (COLAs), which did not increase for 2014. As a result, the contribution levels for IRAs, 401(k)s and employer-sponsored programs remained the same from 2013 to 2014.

The allowable adjusted gross income (AGI) parameters for IRAs, however, did increase for 2014. Income thresholds for 2014 also increased under the Retirement Savings Contributions Credit, commonly known as the Saver’s Credit, which is a nonrefundable tax credit that allows lower- and middle-income retirement plan participants to use elective contributions to reduce their federal income tax on a dollar-for-dollar basis.

Employer-sponsored Programs

Retirement Vehicle

Maximum 2014
Employee Contribution*

Catch-up Contributions

401(k), 457 and 403(b) plans

$17,500 – pre-tax dollars
(same as 2013)

$5,500
(same for 2013)

Roth 401(k), 403(b), and 457 plans

$17,500 – after-tax dollars
(same as 2013)

$5,500
(same for 2013)

SIMPLE plans

$12,000 – pre-tax dollars
(same as 2013)

$2,500
(same for 2013)

SARSEP**
(Salary Reduction SEP)

$17,500 – pre-tax dollars
(same as 2013)

$5,500
(same for 2013)

 

IRAs***

Retirement
Vehicle

2014 Maximum Contribution Limits*

Catch-up Contributions

Adjusted Gross
Income (AGI) Restrictions

Traditional Deductible IRA

$5,500
(same as 2013)

$1,000
(same for 2013)

For active participants in employer provided plan:
Single filers: under $60,000 phasing out completely at $70,000 ($59,000 phasing out completely at $69,000 for 2013)
Married, filing jointly: under $96,000 phasing out completely at $116,000 (under $95,000 phasing out completely at $115,000 for 2013)

Traditional Nondeductible IRA

$5,500
(same as 2013)

$1,000
(same for 2013)

N/A

Roth IRA Nondeductible

$5,500
(same as 2013)

$1,000
(same for 2013)

Single filers: under $114,000 phasing out completely at $129,000 (under $112,000 phasing out completely at $127,000 for 2013)
Married, filing jointly: under $180,000 phasing out completely at $190,000 (under $178,000 phasing out completely at $188,000 for 2013)

* Subject to COLAs.
** SARSEPs must have been established prior to January 1, 1997. The maximum contribution and catch-up amounts are the same as for 401(k), 457 and 403(b) plans.
*** Individuals have until April 15, 2014, to make contributions to their IRAs for 2013.

 

Retirement Savings Contributions Credit****

Retirement
Vehicle

2014 Maximum Credit

Adjusted Gross
Income (AGI) Restrictions

IRAs, Roth IRAs, SIMPLE Plans, 401(k)s and other qualified retirement plans

$1,000 for single filers
$2,000 for joint filers

Single filers: $30,000 or less ($29,500 for 2013)
Head of household filers: $45,000 or less ($44,250 for 2013)
Married, filing jointly: $60,000 or less ($59,000 for 2013)

**** Depending on AGI, the Retirement Savings Contribution Credit, commonly referred to as the Saver’s Credit, provides a credit ranging from 10% to 50% with lower income taxpayers being eligible for a higher credit. For example, a married taxpayer filing jointly with an AGI of less than $36,000 making a $2,000 retirement plan contribution in 2014 could be eligible for a 50% credit, or $1,000. By contrast, if that same taxpayer had an AGI between $36,000 and $38,999, would be eligible for a 20% credit, or $400; an AGI between $39,000 and $59,999 would make that same taxpayer eligible for a 10% credit, or $200.

SOURCE: Wolters Kluwer, CCH: 2014

Permission for use granted.

nb-14-12

 

 

       


   © 2022, CCH INCORPORATED. All rights reserved.   

  Back to Top | Print this Page   
spacer