Preparing for 2014

Preparing for 2014

014 is right around the corner and there is no better time to review the retirement contribution limits for the coming year.  Reviewing these limits now will allow employees to to adjust their payroll deductions and self employed individuals to begin saving so that contributions can be maximized by year end.  For those participating in 401k or 403b plans, the maximum contribution limits remain unchanged from 2013 at $17,500 for those under age 50 and $23,000 for those 50 and older.  IRA and Roth IRA contribution limits also remain unchanged at $5,500 for those under 50 and $6,500 for those 50 and older.  Simple IRA contributions are limited to $12,000 again this year for those under age 50.  If the Simple IRA plan allows, those 50 and over may contribute $14,500.  The contribution limits for a SEP or Keogh plan were increased this year to $52,000.  As with many of these plans, there are income requirements and limitations when maximizing contributions.  We would be happy to discuss the specifics of each type of plan with you.