The IRA is the most versatile tool in your retirement planning toolbox. It’s not surprising that an important step in the retirement planning guide is to understand all the savings tools available. That includes staying on top of yearly changes to the IRA contribution limits.
Each year the IRS announces the inflation adjusted numbers for the traditional and Roth IRA contribution limits along with the traditional IRA deduction limits. These cost of living adjustments are made when the inflation index meets a certain criteria. In turn, the adjustments prevent inflation from eating away at the IRA limits and your ability to save for retirement.
2014 Maximum IRA Contribution Limits
The 2014 IRA contribution limits will look just like it did for 2013. Both the traditional and Roth IRA will have the same contribution limit, which will max out at $5,500. If you are 50 years or older, there is a $1,000 catch up contribution. Continue Reading…