Internal Revenue Service United States Department of the Treasury
Level Basic Advanced Military International

What's New This Year

Income

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