Internal Revenue Service United States Department of the Treasury
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What's New This Year


IRAs and Other Retirement Plans

Modified Adjusted Gross Income (AGI) Limit

For 2014, the maximum IRA deduction increased to $5,500 ($6,500 if age 50 or older). The additional catch-up contribution for individuals aged 50 and over remains $1,000. If a taxpayer is covered by a retirement plan at work, the deduction for contributions to a traditional IRA is reduced (phased out) if the modified AGI is:

  • More than $96,000 but less than $116,000 for Married Filing Jointly taxpayers or Qualifying Widow(er),
  • More than $60,000 but less than $70,000 for a Single or Head of Household, or
  • Less than $10,000 for Married Filing Separately.

For an IRA contributor who is not covered by a workplace retirement plan and is married to someone who is covered, the deduction is phased out if the couple's income is between $181,000 and $191,000.

The AGI phase-out range for taxpayers making contributions to a Roth IRA is:

  • $181,000 to $191,000 for married couples filing jointly
  • $114,000 to $129,000 for singles and heads of household
  • $0 to $10,000 for a married individual filing a separate return