By James Motte
Contributions for 2013
It’s not too late to contribute to your Individual Retirement Account (IRA) for 2013. The IRS allows you to make IRA contributions up to the due date for filing your return for that year, not including extensions. That means you still have until April 15th to make your IRA contribution for 2013.
For 2013, you can contribute up to $5,500 annually to your IRA ($6,500 if you are 50 or older by the end of the year), assuming you have at least $5,500 ($6,500) in earned income for the year. Amounts will be the same in 2014. However, you cannot make regular contributions to a traditional IRA in the year you reach 70½ and older.
If you or your spouse is covered by an employer-sponsored retirement plan, and your adjusted gross income (AGI) exceeds certain levels, you may not be able to deduct your entire contribution to a traditional IRA. See the table below for the 2013 limits for Married Filing Jointly. Additionally, regardless if you are covered by an employer-sponsored retirement plan or not, if your AGI exceeds $178,000 for married filing jointly taxpayers, the amount you can contribute to a Roth IRA for 2013 is reduced.
If you file a joint return, you and your spouse can each make IRA contributions even if only one of you has taxable compensation. The amount of your combined contributions cannot be more than the taxable compensation reported on your joint return. It does not matter which spouse earned the compensation.
Contributions for 2014
Below are the amounts you can contribute (defer) for 2014: