We are getting close to the end of January 2015 and hopefully that means that most of you are already deep into work on your 2015 goals. A few of you may be restarting some missed 2014 goals or possibly finalizing a few 2014 goals that you almost made but just needed a bit more time. Wherever you are in your goals there is one bit of good news for those who missed out on contributing to your 2014 self-directed IRA or 401k.
Yes, there is good news for those of you who still haven't contributed to your 2014 self-directed IRA or 401k. The cutoff date for contributions for the 2014 tax year is actually Wednesday, April 15, 2015. Contribute today before it is too late!
So how much can you contribute for the 2014 tax year? The below chart clearly shows contribution limits.
Traditional and Roth IRA Contribution Limits for 2014
Age 49 and under – 100% of compensation, up to $5,500
Age 50 and over – 100% of compensation, up to $6,500
To be able to make this contribution to a Roth IRA in 2014, an individual's MAGI (modified adjusted gross income) must be lass than the below numbers:
Individual – $114,000 – $129,000
Married and filing jointly – $181,000 – $191,000
For a Traditional IRA the MAGI limit to for a partial deduction are as follows:
Single- $60,000 – $70,000
Married and filing jointly – $96,000 – $116,000
married and filing separately – $0 – $10,000
Those with spouses who don't earn income – $181,000 – $191,000
Hopefully, if you haven't contributed to your self-directed IRA for 2014 you will get on it. There are so many benefits that you can get from non-traditional investments that self-directed IRAs allow for.
If you aren't sure what you would do with your self-directed IRA contribution you can either invest it into something like gold. If you have other things that your self-directed IRA is already invested in, like real estate you could use the contribution to pay for real estate repairs or upgrades.
There are many benefits that you get from contributing to your retirement accounts. Don't let your 2014 IRA contribution pass without contributing.
Author: Nick Barker