- December 31, 2013
- Posted by: Lauren A. Carnes, CPA, MST
- Category: Tax, TaxBites
Should you increase your retirement plan contributions in 2014?
With the new year upon us, it’s time to start thinking about 2014 retirement plan contributions. Contributing the maximum you’re allowed to an employer-sponsored defined contribution plan is likely a smart move:
Also consider contributing to a traditional IRA. If you participate in an employer-sponsored plan, your IRA deduction may be reduced or eliminated, depending on your income. But you can still benefit from tax-deferred growth.
Retirement plan contribution limits generally aren’t going up in 2014, but consider contributing more this year if you’re not already making the maximum contribution. And if you are already maxing out your contributions but you’ll turn age 50 in 2014, you can put away more this year by making “catch-up” contributions.
For more ideas on making the most of tax-advantaged retirement-savings options in 2014, please contact us.