Advice for Savvy Retirement Planning

IRA Contribution Limits

IRA Contribution LimitsIRA Contribution Limits

Each year the IRS publishes updated IRA contribution limits, as well as catch-up contribution limits for the new year. Typically, the limits the IRS sets each year is based on inflation factors (with minimum $500 increases), so they do not necessarily increase the limit each year.

The IRA Contribution Limit for 2014 has not been set yet. But for 2013, however, the IRA contribution limit has been increased.

The limit on IRA contributions applies to both deductible and non-deductible Traditional IRA’s, as well as Roth IRA’s. You may contribute to either type (if you qualify), but you are still subject to the same total aggregate contribution limit.

READ:
2014 Social Security Inflation Adjustment
401K Contribution Limits 2014
Don’t Buy-and-Forget the Investments in Your 401K Plan

Recent History of IRA Contribution Limits:

As you can see, the IRA contribution limits do not rise dramatically each year. Although over time, if investors are diligent about increasing their contributions, it can certainly make a difference.

2014 – $5,500 + possible index for inflation ($500 minimum increase)
2013 – $5,500
2012 – $5,000
2011 – $5,000
2010 – $5,000
2009 – $5,000
2008 – $5,000

Over Age-50 Catch Up IRA Contribution Limits

For those of you that are over age 50 (or turn age 50 before the end of the year), you are allowed an additional IRA “catch-up” contribution. These limits have not adjusted for inflation, but may at some point in the future:

2014 – $1,000
2013 – $1,000
2012 – $1,000
2011 – $1,000
2010 – $1,000
2009 – $1,000
2008 – $1,000

IRA Deduction Limits

Roth IRA contributions are not tax deductible.

Your deduction is allowed in full if you (and your spouse, if you are married) aren’t covered by a retirement plan at work.

If you ARE covered by a retirement plan at work, you can see the income limitations at the IRS website by going here.

————————————————————————–

Robert Henderson is the President of Lansdowne Wealth Management, an independent, fee-only advisory firm in Mystic, CT. His firm specializes in financial planning and investment management for retirement, with a special focus on the particular needs of women that are divorced or widowed. He is an Accredited Asset Management Specialist and a Certified Divorce Financial Analyst. Mr. Henderson can be reached at 860-245-5078 or bhenderson@lwmwealth.com. You can also view his personal finance blog,The Retirement Workshop at http://lwmwealth.com/blog and the firm’s website at http://www.lwmwealth.com.

If you are an employee or retiree of General Dynamics, Pfizer, or L&M Hospital, and you would like advice and direction on managing your Fidelity 401K or Hewitt 401K plan, please sign up for our monthly newsletter, which provides complimentary ongoing advice, commentary, and model portfolios for each of those plans. You can sign up automatically at Your 401K http://www.lwmwealth.com/services/your401k.html.

See my Google+ Profile

Best Financial Posts of the Week…07-22-13

Here is a roundup of some of the best posts of last week on the web: Weighing the Week Ahead: It's All About Earnings - Jeff … [Continue reading]

Fee-Only Financial Planner in CT

Lansdowne Wealth Management, LLC ("LWM") is an independent, fee-only financial planning firm based in Mystic, Connecticut that offers financial retirement strategies backed by education, knowledge, and experience. Our clients depend on us to provide … [Continue reading]

Best Financial Posts of the Week…

man at computer

Here is a roundup of some of the best posts of last week on the web: Roger Wohlner, the Chicago Financial Planner, talks about how to Avoid these 9 Investment … [Continue reading]

What Is a Certified Divorce Financial Analyst?

CC-Dollar Drain

One of the most difficult aspects of divorce can be the financial trauma inflicted on both parties. Not only can the direct costs of divorce be significant (such as attorney fees, transitory costs, etc.), but the lifelong financial outcome and … [Continue reading]

Financial Common Ground

Financial Common Ground

Over the past few weeks, respected financial planner, author, and blogger, Tim Maurer addressed the financial planning community with what he saw as a breakdown in the authoritative qualities of our professional. More to the point, and to paraphrase … [Continue reading]

What is The Taper? Don’t Panic

Mount St. Helens

** UPDATE ** 12/18/2013 Well, there you have it. The Fed has finally announced it plans to being Tapering their bond buying from $85B a month down to $75B a month. Truth be told, the reduction in bond buying is symbolic, nothing more than market … [Continue reading]

6 Major Financial Mistakes During Divorce

Divorce

After decisions about custody of children, the division of marital assets can be the most difficult aspect of divorce. Emotions can play a large role in how parties chose to split assets. This article outlines six of the biggest financial mistakes … [Continue reading]

Pension Plan Options – Lump Sum or Annuity?

Pension Options

Pension Payout Options Most corporate pension systems offer a range of options when choosing how to receive benefits. It is extremely important to choose wisely, as in virtually all cases, once an election has been made, it cannot be “undone”. … [Continue reading]

The Sequester – What Is It?

Capitol Hill

Here we go again. First we had the Fiscal Cliff drama to contend with, then Congress entertained us throughout the holiday season with their Debt Ceiling antics. As if that were not enough, now we get to watch as Congress and the White House do their … [Continue reading]