IRA Contribution Limits

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HOW MUCH CAN YOU CONTRIBUTE?

Contributing to your employer-sponsored plan is a great place to start saving for the retirement you envision. But did you know that you can also set aside additional funds into an IRA? The right IRA for your needs depends on your earned income and goals.
What is your filing status?(what's 'filing status'?)
What is your filing status?
(filing jointly)
What is your age?
- +
 
What is your spouse's age?
- +
 
Are you eligible for an employer-sponsored retirement plan?(not sure?)
Are you eligible for an employer-sponsored retirement plan?
Is your spouse eligible for an employer-sponsored retirement plan? (not sure?)
Is your spouse eligible for an employer-sponsored retirement plan?
What is your adjusted gross income (AGI)? (What's AGI?)
- +
 
Contribution limit available to you
 RothTraditional
deductible
Traditional
non-deductible
  
2013$5500$5500$5500
What's the difference between these IRA's?
Contribution limit available to your spouse
 RothTraditional
deductible
Traditional
non-deductible
  
2013$5500$5500$5500
What's the difference between these IRA's?

DIFFERENT TYPES OF IRAs

Traditional


If you are not covered by an employer-sponsored retirement plan, contributions are fully deductible (no income limits).

If you are covered by an employer-sponsored retirement plan, contributions are partially or fully deductible only if your Adjusted Gross Income (AGI) is:
  • Less than $70,000 (single filer)
  • Less than $116,000 (joint filer) (2014)
  • Less than $69,000 (single filer) (2013)
  • Less than $115,000 (joint filer) (2013)
  • Less than $70,000 (single filer) (2014)
  • Less than $116,000 (joint filer) (2014)
If you are covered by an employer-sponsored retirement plan and your AGI is above these limits, you can still contribute to a Traditional IRA, but your contributions will not be deductible.

Contributions are not allowed after age 70 1/2.

Roth


Contributions are made with after-tax dollars. You can contribute to a Roth IRA if your Adjusted Gross Income is:
  • Less than $129,000 (single filer)
  • Less than $191,000 (single filer)
  • Less than $127,000 (single filer) (2013)
  • Less than $188,000 (joint filer) (2013)
  • Less than $129,000 (single filer) (2014)
  • Less than $191,000 (joint filer) (2014)

Contributions are allowed at any age (including after age 70 1/2 if you have earned income.)

Earnings grow tax deferred

Withdrawals after age 59 1/2 are taxed at your ordinary income tax rate.

Earnings grow tax deferred

Withdrawals of your original contributions are free of federal taxes and penalties at any age.

Withdrawals of your earnings are income tax and penalty free, if you have had the IRA for five years and you are one of the following:
  • 59 1/2 or over
  • Using the funds for a qualified first-time home purchase
  • Become disabled or die
If filing jointly, a non-working spouse can open a Traditional or Roth IRA if the couple's combined contributions do not exceed $11,000 ($13,000 if you are both age 50 or over).

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C50737