2013 IRA Contribution Limits

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2013 IRA Contribution Limits:

You may contribute the smaller of this amount or your taxable compensation for 2013, subject to the limitations below based on income or tax filing status.

Full 2013 Contribution Limit
Under 50 $5,500
Age 50+ $6,500


Roth IRAs

Roth (post-tax) contributions are limited for those with higher incomes.  The following table shows which categories are eligible for the full contribution.  For more details on calculating reduced contribution amounts, please see the IRS website.

Roth Contribution Limits by Income and Tax Filing Status

 Income Single or Head of Household Qualified Widow(er) Married (filing jointly) Married (filing separately)*
$0 to $10k Full Amount Full Amount Full Amount Zero
$10 to $112k Full Amount Full Amount Full Amount Zero
$112k to $127k Reduced Amount Full Amount Full Amount Zero
$127k to $178k Zero Full Amount Full Amount Zero
$178k to $188k Zero Reduced Amount Reduced Amount Zero
Above $188k Zero Zero Zero Zero
*Married (filing separately) can use the limits for single people if they have not lived with their spouse in the past year.

 

Traditional IRAs

Anyone can contribute to a Traditional IRAs, but to deduct your contributions from your taxable income you must meet the income requirements below.  For more information on calculating partial deductions, please see the IRS website.

If you DO have a retirement plan offered at work:

Income Single or Head of Household Qualified Widow(er) Married (filing jointly) Married (filing separately)
$0 to $10k Full Deduction Full Deduction Full Deduction Partial Deduction
$10k to $59k Full Deduction Full Deduction Full Deduction No Deduction
$59k to $69k Partial Deduction Full Deduction Full Deduction No Deduction
$69k to $95k No Deduction Full Deduction Full Deduction No Deduction
$95k to $115k No Deduction Partial Deduction Partial Deduction No Deduction
Above $115k No Deduction No Deduction No Deduction No Deduction

If you do NOT have a retirement plan offered at work:

Spouse’s Plan Status Single Married (filing jointly) Married (filing separately)
Spouse DOES have plan offered at work Full Deduction Full Deduction up to income of $178k, Partial deduction from $178k to $188k; No deduction above $188k No deduction if income above $10k; Partial deduction below
Spouse does NOT have plan offered at work Full Deduction Full Deduction Full Deduction

 

How Do I Get Started?

You can open an IRA online in just a few minutes at almost any brokerage.  Here are a few popular no fee choices that offer no-load, no transaction fee mutual funds, an ideal choice for long-term IRA investors:

TD Ameritrade - One of America’s most popular brokerage offers the newest technology and research while maintaining an old-school commitment to service with physical locations almost anywhere you live in the U.S.  Plus, they’ll let you trade free for the first 60 days.

E*TRADE - Offers a great selection of asset classes (stocks, bonds, 8,000+ mutual funds, options, ETFs, and IPOs) and includes cutting edge analytical software and research.  Over 1,300 of the funds offered have no-load and no-transaction fees.

Scottrade - This well-regarded discount brokerage is a cheaper option for stock traders, providing research and analysis software while only charging $7 per stock trade.  And with 500+ local branch offices, it’s likely there is one nearby where you can experience their award-winning customer service in person, should you need it.

 

Other common retirement savings questions

Should I convert my traditional to a Roth IRA?

Will rolling over my 401(k) into an IRA result in higher investment returns?

Am I saving enough in my 401(k)?

 

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  • bea

    We depleted our IRA. I am 58husband 68. I have a couple of creit cards and $3,000 what can I invest in to make it grow

  • Terp 66

    I am searching whether I can take a deduction on my 2013 contribution made in March 2014 when I turned 70 1/2 in Feb 2014. I do meet the earned income rules.