The Internal Revenue Service has announced the following retirement contribution plan limits for the 2014 tax year.
Over 49 Catch-Up: $1,000
Traditional Phase Outs
Single (covered by employer plan) $60 – 70k
Married (contributor covered) $96 – 116k
Married (spouse covered) $181 – 191k
Roth Phase Outs
Single $114 – 129k
Married $181 – 191k
Over 49 Catch-Up: $5,500
SEP IRA Contributions
25% of compensation up to $52,000
20% of net self-employment income
SIMPLE IRA Contributions
Salary deferral up to $12,000
Over 49 Catch-Up: $2,500
I just read somewhere that there is another opportunity for us to convert entire IRA into Roth IRA. Can you please confirm it?
For years before 2010, Roth IRA conversions were allowed only if the taxpayer’s modified AGI was no more than $10,000. Beginning in 2010, all individuals, regardless of filing status or AGI, are eligible to roll IRAs and certain employer plans to ROTH IRAs.
[§408A(c)(3)(B)] paraphrased from PPC 1040 Deskbook Key Issue 5D.