New limits same as the old limits
The maximum amount you will be able to contribute to either a Roth or a traditional IRA will remain at $5,500 for the 2014 tax year, or $6,500 for those over 50 — no change relative to the 2013 tax year.
The maximum amount you will be able to contribute to a 401(k) in 2014 will also hold steady at $17,500, or $23,000 for those over 50.
The reason for no change
The base contributions remain unchanged because this year’s increase in the Consumer Price Index — one measure of inflation — did not meet legislatively defined thresholds for their adjustment. The catch-up contributions available to those over 50, did not change because they’re not tied to inflation and so would require a Congressional vote to increase.
This is all according to an IRS press release titled Pension Limitations 2014. Check out the link for further details or limits on other tax-advantaged retirement arrangements.
Not much. It’s nice that there’s a bit of tax subsidy to motivate those who aren’t saving for retirement to put a little away. I can’t see that this change — or lack of change — will affect much of what I do financially. Will it change how you invest for retirement?