Roth IRA Contribution Limits 2014

Roth Retirement Sign

The 2014 contribution limit for Roth IRAs is $5,500 ($6,500 if you’re age 50 or older). You can contribute up to the limit unless you earn less than that amount. You cannot contribute more than your taxable compensation for the year.

In addition to an absolute limit, there are also income limits to contributing to a Roth IRA. The table below shows how much you can contribute depending on your marital status for tax purposes and your income. If you fall in the “reduced amount” category, your contribution amount is phased out linearly. For example, if you are single and earn $119k, you fall 1/3 of the way into the phase out range (The range is $114k to $129k, a range of $15k, and you fall $5k into the range and $5k is 1/3 of the $15k rang). Since you are 1/3 of the way into the phase out range, you would lose 1/3 of your contribution limit. This would leave you with a contribution limit of $3,333 (2/3 of $5,000 is $3,333). For more details on this calculation, please visit 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 $114k Full Amount Full Amount Full Amount Zero
$114k to $129k Reduced Amount Full Amount Full Amount Zero
$129k to $181k Zero Full Amount Full Amount Zero
$181k to $191k Zero Reduced Amount Reduced Amount Zero
Above $191k 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 $60k Full Deduction Full Deduction Full Deduction No Deduction
$60k to $70k Partial Deduction Full Deduction Full Deduction No Deduction
$70k to $96k No Deduction Full Deduction Full Deduction No Deduction
$96k to $116k No Deduction Partial Deduction Partial Deduction No Deduction
Above $116k 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 $181k,Partial deduction from $181k to $191k;No deduction above $191k No deduction if income above $10k; Partial deduction below
Spouse does NOT have plan offered at work Full Deduction Full Deduction Full Deduction

 


The Backdoor Roth IRA for High Income Earners

While there are income limits on who can contribute to a Roth IRA and who can deduct contributions to a Traditional IRA, there are no longer limits on who can convert a Traditional IRA to a Roth. This means that anyone, regardless of income, can contribute to a Traditional IRA and immediately convert it to a Roth IRA. For more details and caveats, please see our complete article on Backdoor Roth IRAs.

 

Read More From NerdWallet:

Photo Credit: Roth Retirement Sign by Shutterstock

We want to hear from you and encourage a lively discussion among our users. Please help us keep our site clean and safe by following our posting guidelines, and avoid disclosing personal or sensitive information such as bank account or phone numbers. Any comments posted under NerdWallet's official account are not reviewed or endorsed by representatives of financial institutions affiliated with the reviewed products, unless explicitly stated otherwise.