The 2014 Roth IRA limits and Roth 401k contribution limits were just announced, so you can start planning your contributions. The 2014 limits will stay the same for both the Roth 401k and the Roth IRA.

The 401k limits and IRA limits are determined based on inflation, but can only increase in $500 increments. The 2014 social security wage base increased even though the Roth 401k limits and Roth IRA limits stayed the same.

I highlight the Roth IRA and the Roth 401k because they are my favorite retirement plans; although the limits for traditional 401ks and IRAs are the same as the Roth 401k and Roth IRAs.

2013 & 2014 Contributions

Here are the official contribution limits from the IRS:

Roth 401k Contributions 2013 2014
Maximum $ 17,500 $ 17,500
Catch-up 50 and over $ 5,500 $ 5,500
Roth IRA Contributions 2013 2014
Maximum $ 5,500 $ 5,500
Catch-up 50 and over $ 1,000 $ 1,000

You can make your 2014 contributions as early as January 1, 2014 for the whole year. If you contribute 2014 Roth IRA money between January 1 and April 15, be sure to designate calendar year 2014 if you have already contributed the maximum for 2013.

To maximize your IRA investments, make sure you aren’t paying extra fees in your IRA. You can transfer your IRA to Scottrade to avoid annual fees.

Roth IRA Income Limits

You may contribute the full amount this year to your Roth IRA if your 2013 modified adjusted gross income is below $112,000 for singles ($178,000 for married). You may make partial contributions until your income hits $127,000 ($188,000 for married). If your income is above that, you cannot contribute to a Roth IRA. If you are interested, there is a workaround called the Backdoor Roth IRA if your income is above the limits.

2013 Contribution Deadlines

You can still make 2013 contributions before the end of the year for your 401k. The deadline for 2013 IRA contributions is April 15, 2014, the same as the tax deadline.

More Helpful Roth Topics






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Comments to 2014 Roth 401k and Roth IRA Limits Will Not Increase

  1. Using a Roth IRA for retirement is a great plan, especially if you’re young like me. I love the idea of having tax free withdrawals!! It’s a shame that the IRA limits didn’t go up this year, but it should have been expected. With very little inflation this year, nothing really went up.

    Chris Gagner @ SmartPF

  2. Good info. I had forgotten that you could wait till April 15th to contribute to your IRA for the prior year. I’ll have to take advantage of that!

    Chris

    • Many are not aware of this. It is why you don’t get your 5498 in the mail until May – so any previous year contribution made between Jan 1 and April 15 can be included in the prior year form.

      When I was younger and my budget was tighter, I took advantage of this all of the time. Any extra money I received between Jan 1 and April 15 went in as a prior year contribution. That way I could max out my account each year.

      Don @ MoneySmartGuides

  3. The company I work for offers both the 401K and Roth 401K. I’m 43. Is there a maximium limits for both or can the total of both not exceed $16,500 annual?

    Mark

    • Mark,

      The total of the traditional 401k and Roth 401k added together cannot exceed the $16,500 limit.

      Madison

  4. Does my contribution to a Roth 401K affect the maximum I can contribute to a Roth IRA? Specifically, can I contribute both 16.5K to the Roth 401K and 5K to the Roth IRA in 2011?

    Alan

    • Alan,

      Yes, you can contribute both the $16,500 to a Roth 401k and $5,000 to a Roth IRA.

      Madison

      • Your answer to Alan contradict with your answer to Mark. You told Mark,

        401K – Amount
        + IRA – Amount
        ———————-
        Cannot exceed 16,500

        So Mark should ensure that his IRA contribution is 5K and rest for 401K (16,500-5000) (if he chooses it)

        On the other hand, you responded to Alan that he can max 401K (16,500) and Max IRA (5000) with grand total
        21,500 investment .

        I am little confused? Perhaps I misunderstood ..

        Intekhab


  5. The last two answers on this page appear to contradict one another.

    Answer to Alan: Yes, you can contribute both the $16,500 to a Roth 401k and $5,000 to a Roth IRA.

    Answer to Mark: The total of the traditional 401k and Roth 401k added together cannot exceed the $16,500 limit.

    Which is correct????

    Terri

    • Terri,
      They are actually both correct.

      The limits are $16,500 for a 401k (Roth 401k, traditional 401k, or a combination of both) and $5,000 for an IRA (Roth IRA, traditional IRA or a combination of both).

      401ks and IRAs each have separate limits. It gets confusing because there are Roth and traditional accounts for both the 401k and IRA.

      Madison

  6. Do the 401k contribution limits include employer contributions?

    Mojito Chica

  7. If I have a retirement plan beginning date in 2011 and ending date in 2012, which deferral limits are correct, 2011 or 2012?

    Cathy

    • Do you mean IRA or 401k? 401k contributions made during a calendar year are counted for that year. 2011 limits were $16,500 and 2012 limits were $17,000. IRA contributions made before the IRS Regular Tax Filing Deadline (usually April 15th) can be counted for either the current year or for the prior year, you choose. IRA contribution limits in both 2011 & 2012 were $5,000 and if over 50 during the tax year, $6,000.

      JK Pate

  8. Are there any income limitations for investing in a roth 401K (the roth has a top end income limitation and then you cannot contribute)….does the roth 401k have the same?

    Second question….if I have a roth 401K and then need to roll that into a roth when I change employers….do I have a tax issue if I am over the income level for the roth ira contribution?

    Jim S.


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