NEW YORK (MainStreet) Investors looking to step-up their retirement savings next year aren't getting much help from the Internal Revenue Service. Cost of living adjustments to the contribution limits for 401(k) plans and other retirement accounts will be non-existent in 2014, though some income phase-out ranges have been raised.
For 2014, the deferral limit for 401(k), 403(b), most 457 plans and the federal government's Thrift Savings Plan will remain unchanged at $17,500.
Catch-up contribution limits for participants 50 and over also remains unchanged at $5,500.
Annual contributions to IRAs will still be $5,500, with catch-up contributions for individuals 50 and over locked-in at $1,000.
If you are looking to take a deduction for an IRA contribution at tax time, the phase-out range for singles and heads of household who are covered by a workplace retirement plan has gotten a bit of a boost on modified adjusted gross incomes (AGI) limits. For 2014 the range will be between $60,000 and $70,000 -- up from $59,000 and $69,000 in 2013. For married couples filing jointly, the income phase-out range will be $96,000 to $116,000, up from $95,000 to $115,000 this year.
If you contribute to an IRA and aren't covered by an employer-sponsored retirement plan, the deduction is phased out next year when a couple's income is between $181,000 and $191,000 -- up from $178,000 and $188,000 this year.
Roth IRA contributions will phase out between $181,000 to $191,000 for married couples filing jointly. For singles and heads of household, the income phase-out range is $114,000 to $129,000. Both ranges were boosted from 2013 limits.