Below are some useful updates to retirement account contribution limits and other useful tax numbers. Also, now is time to start thinking about your 2013 IRA contribution if you have not already done so. This is an easy deduction and a great way to save for retirement.
- SOCIAL SECURITY taxable wage limit increases from 2013 limit of $113,700 to $117,000 for 2014. Retirees under full retirement age can earn up to $15,480 without losing benefits.
- 401(k) MAXIMUM salary deferral remains at $17,500 for 2014. The catch-up limit for 50 and older also remains unchanged at $5,500.
- SIMPLE maximum deferral remains at $12,000 for 2014. The catch-up limit for 50 and older also remains unchanged at $2,500.
- IRA CONTRIBUTION limit remains at $5,500 for 2014 ($6,500 for 50 and older).
- HSA CONTRIBUTION limit increases for 2014 to $3,300 for individuals and to $6,550 for families.
- KIDDIE TAX threshold for 2014 remains at $2,000.
- ANNUAL GIFT TAX EXCLUSION remains at $14,000.
- ESTATE TAX EXEMPTION increases from the 2013 amount of $5,250,000 to $5,340,000 for 2014.
Have a great tax season!