4 Investment Accounts You Need to Have

What investment accounts are available for me?  What are the tax consequences of investing?  Planning your investments to build a retirement fund can be a dizzying prospect. The various questions, options, details, accounts, and amounts are enough to make anyone’s head spin. It is important to work with an investment coach that can understand your specific needs.

Below are a few basics and suggestions on some options available to most people.

1. Fulfill Your Company’s Match Program: If you work for an employer that has a retirement plan option, this is a must.  Most companies, even small companies, offer some sort of retirement account.  Smaller companies usually have simple IRA’s or SEP IRA’s, while larger companies usually have 401k’s.  There is a high likelihood that your company has a match program as part of their plan.  This means that for each contribution you make into your account, the company will match it up to a certain amount.  So match programs offer an instant 100% return on the money invested.   Before you invest anywhere else, make sure you are investing enough in your work retirement plan to get your full match.

Warning!  If you don’t plan on working for the company long term, make sure you check out the vesting schedule.  A lot of company retirement plans don’t give you full access to the employer contributions unless you work there for a 3 to 5 years.

2. IRA to the Max: An IRA is an individual retirement account that can be opened by anyone seeking to invest.  Investing in an IRA usually gives you more investment choices and flexibility than is offered in many 401k plans.   Also, you have the Roth option.  There has been a long standing battle between the Traditional IRA’s and the Roth IRA’s. When it comes to your retirement planning, your Roth IRA should win this battle in most cases. There are a few different reasons why you should make this move. Investing in a Roth allows you to pay taxes on your income now, and avoid the higher tax rate as it grows in your retirement.  The total taxes paid with a Roth IRA from opening of account to death and beyond are almost always less than with a Traditional IRA.

Who’s eligible?  Even if you have a retirement plan at work you are eligible to contribute to a Roth IRA.

Another thing to consider if you are married is opening a Roth IRA for your spouse.  Even if they are not working you can contribute to their Roth IRA and max it out as well.

3. Open Taxable (Non-Qualified) Accounts: If you have maxed out your company plan and an IRA for your and your spouse, congratulations, you are doing very well in the retirement planning side of things.  But what if you still want to put more money away?  There are still options.   You can still invest more money in a non-qualified account.  If you are married this would be a joint account, and for the singles it is a personal account. There are a few advantages and disadvantages of this type of account.  This is not a tax sheltered account, so there is no taxable advantage.

One big advantage.  There is no tax penalty or fee for taking the money out at any age for any reason.  For that reason a lot of people use this account as an emergency fund, or in any case where they want extra flexibility.

4. Education Planning:  If you have kids, you need to think about saving money for their future, especially their college expenses.  There are Education Savings Accounts, and other ways and means of doing this that are advantageous for tax purposes.

 
There is a lot of things to know, and I haven’t even gotten into life insurance and that side of the retirement planning.   Like I mentioned before, there is a reason that no one has created a perfect plan that fits everyone. Depending on your personal income, you might not be eligible for certain accounts, like a Roth IRA.  But, for most people, these four steps are a great place to start.

By Jimmy Hancock



College Savings Piggy Bank. Digital image. Flickr. N.p., n.d. Web. 27 June 2017.

Should you rollover your 401k?

401k pigAfter leaving a company, former employees can usually opt to keep their 401K or move the money over into a Rollover IRA. The benefits of rolling over old employer 401ks often outweigh the negatives.

1. Investing Efficiency
Most company sponsored 401k plans offer only a small selection of mutual funds, target-date funds and company stock. With a Rollover IRA, a person can choose to invest in a wide variety of stocks and bonds within institutional funds. Diversification is the key to investment success.  Investing in a wide base and including small, value, and international stocks can help to boost your annual return.  A small amount of increase in annual return due to investing in a more efficient portfolio can add thousands of dollars to your bottom line in retirement.

2. Avoiding tax complications
By rolling over an old 401K rather than taking the money out, a former employee does not have to worry about paying taxes or penalties to the IRS associated with early distributions from a retirement account. According to a recent study by Fidelity cited by a Forbes article, one in three people cash out their 401K plan when they leave a company or change jobs. People who cash out their 401k not only owe ordinary income taxes on the full amount, but also owe an additional 10 percent penalty unless they qualify for a rare exemption.  Cashing out a 401k should only be done in an emergency when there are no other options.

3. The Roth Conversion

Once someone has rolled over 401k to an IRA, they then have the option of converting that money into a Roth IRA.  A Roth IRA has great tax advantages in that your money, including principle and growth is not taxed when taken out after age 59 1/2.  When you do a Roth Conversion, you pay the taxes in that year, and are never taxed on it again.  If you are in a low tax bracket after ending or changing employment, then a Roth Conversion is a must.

4. Ease of Access

There can be a lot of people to go through if you want to make changes or withdraw from your 401k.  I personally have had some experiences where 6 months has passed without anything happening after someone requested a change in an old 401k.  With an IRA, you can email, call, or text your advisor, and he will help you to accomplish whatever you need done with your account.

 

Ultimately, the benefit of an IRA rollover is flexibility. Not only does a person have more investment options, but he or she can eventually choose to convert money from a Rollover IRA into a Roth IRA. Many people view the Roth IRA as the ultimate retirement investment account because the money can be withdrawn tax free in retirement.

By Jimmy Hancock

Don’t Miss this Investing Tax Credit!

tax credit1The Saver’s Credit: almost a well-kept secret?

It’s becoming increasingly difficult for low to middle-income families to save; however, the IRS allows a Saver’s Credit that could mean a $2,000 tax credit per family. Of course, it depends on the tax filer’s status as well as their adjusted gross income, or AGI.  The tax benefit is to increase the incentive for lower income families to put money away for retirement.  Every family that qualifies should be taking advantage of this bonus tax credit.

To be eligible for the Saver’s Credit…

  1. You must be 18 years or older
  2. You must not have been a full time student
  3. You must not be claimed as a dependent on another person’s tax return.
  4. Your Adjusted Gross Income must be below $61,000 (married filing jointly), or $30,500 (individual).

How it works…

In 2015, if your tax status is married filing jointly and your AGI is not more than $36,500, and you meet the other requirments, then you qualify for an additional 50% tax credit.  This number increases annually for inflation.  For 2016 it will be $37,000.  If you are above that income level it goes to a 20% tax credit until you are phased out above the $61,000 threshold.

Let’s say that you earned $36,500 for all of 2015, and your spouse was unemployed for the entire year. If you made a $2,000 contribution to your Qualified Plan (ie IRA, Roth IRA, 401K, 403B) for 2015, then you can receive that 50% tax credit which in this case is $1000 against any taxes owing or to add to your refund.  On top of that you can contribute $2000 to your spouses Qualified Plan and get an addition $1000.   That is $2000 cash money in your pocket for contributing $4000 into a retirement account.  $2000 is the maximum tax credit any family can receive.

This tax credit is in addition to the tax benefit you get within the IRA such as being able to deduct from your income all contributions to a Traditional IRA.

Don’t miss out on this too little known tax credit that can save you big money on your taxes this year.

Also, if you don’t have any investment account currently, and you know you qualify for this credit, why would you forego getting 50 cents cash back for every dollar invested.  And at the same time you are putting money into a growing retirement account. A win win for sure.  You can open up an IRA and contribute to it for tax year 2015 up until April 15th of this year.

By Jimmy Hancock

References

  1. IRS. “Retirement Savings Contributions Credit (Saver’s Credit).” Retirement Savings Contributions Credit (Saver’s Credit). IRS, 23 Oct. 2015. Web. 02 Feb. 2016. <https://www.irs.gov/Retirement-Plans/Plan-Participant,-Employee/Retirement-Savings-Contributions-Savers-Credit>.

Investment Accounts 101

investing choicesPlanning your investments to build a retirement fund can be a dizzying prospect. The various questions, options, details, accounts, and amounts are enough to make anyone’s head spin. Wouldn’t it be nice if there was a generic recipe for success? A nice neat list of step by step instructions on how to make the best decisions on where, when, and how much when it comes to investing for your retirement? Unfortunately, this list of steps is incredibly dependent upon each individual and their current situation and future plans, so a sure fire success route does not exist.  This is why it is important to work with an investment coach that can understand your specific needs.

But before you stop reading, there are a few things that we feel you should know about that will lead you down the right path.  Here’s the order that is suggested for the majority of people in terms of what retirement accounts to invest in.

1. Fulfill Your Company’s Match Program: Most companies, even small companies, offer some sort of retirement account.  Smaller companies usually have simple IRA’s or SEP IRA’s, while larger companies usually have 401k’s.  There is a high likelihood that your company has a match program as part of their plan.  This means that for each contribution you make into your account, the company will match it up to a certain amount.  So match programs offer an instant 100% return on the money invested.   Before you invest anywhere else, make sure you are investing enough in your work retirement plan to get your full match.

Before we move on, here is word of warning on the company retirement plan.  If you don’t plan on working for the company long term, make sure you check out the vesting schedule.  A lot of company retirement plans don’t give you full access to your money unless you work there for a few years.

2. IRA to the Max: An IRA is an individual retirement account that can be opened by anyone seeking to invest.  Investing in an IRA usually gives you more investment choices and flexibility than is offered in many 401k plans.   Also, you have the Roth option.  There has been a long standing battle between the Traditional IRA’s and the Roth IRA’s. When it comes to your retirement planning, your Roth IRA should win this battle in most cases. There are a few different reasons why you should make this move. Investing in a Roth allows you to pay taxes on your income now, and avoid the higher tax rate as it grows in your retirement.  The total taxes paid with a Roth IRA from opening of account to death and beyond are almost always less than with a Traditional IRA.

Another thing to consider if you are married is opening an IRA for your spouse.  Even if they are not working you can contribute to their IRA and max it out as well.

3. Company Retirement Plan to the Max: After you have reached your company’s matching level and have maxed out your IRA or Roth IRA, turn your funds back to the company retirement plan until they are maxed out as well. Having both your Roth IRA and your  company retirement plan maxed out gives you some variety in your portfolio in terms of how the investments are taxed. This variety gives you something of a safety net in terms of how taxes and other investments change over time and the affect they will have on your funds.

4. Open Taxable (Non-Qualified) Accounts: If you have maxed out your company plan and an IRA for your and your spouse, congratulations, you are doing very well in the retirement planning side of things.  But what if you still want to put more money away?  There are still options.   You can still invest more money in a non-qualified account.  If you are married this would be a joint account, and for the singles it is a personal account. There are a few advantages and disadvantages of this type of account.  This is not a tax sheltered account, so there is no taxable advantage.  But one big advantage is there is no tax penalty or fee for taking the money out at any age for any reason.  For that reason a lot of people use this account as an emergency fund.
This plan is not something to jump into without doing your homework. There is a lot of things to know, and I haven’t even gotten into life insurance and that side of the retirement planning.   Like I mentioned before, there is a reason that no one has created a perfect plan that fits everyone. Depending on your personal income, you might not be eligible for certain accounts, like a Roth IRA.  But, for most people, looking for a general order of priority for their retirement investments, these four steps are a great place to start.

By Jimmy Hancock

Who Wants to be a Millionaire?

The word Millionaire used to seem like this totally unrealistic goal that would never happen unless I won the lottery or inherited a bunch of money from some distant relative.   As it turns out becoming a millionaire is not all that unrealistic of a goal.  It is achievable on almost any salary if you do it the right way.  There are over 6.9 million Millionaire households in America.  That’s more than 1 in every 20 households.  1. 

Is it Possible?

This is my 3 step guide to reach the status of millionaire: 1. Saving/investing at least 10% of your income, 2. investing prudently while taking proper risks, and 3. starting young.

 

1. Saving 10% of Your Income

I will show you an example of a person making $30,000 a year can be a millionaire by the time they retire.   A 25 year old, let’s say her name is Elicia, just graduated from college and got a job making $30k year.  She decides to put 10% of that into a Roth IRA, which is $250 a month.   As it turns out she stayed at that same job her entire life and never got a raise, but continued to invest the 10%.   When she retires at age 67, with growth rate of 8%, she will have $1,058,593 in her Roth IRA.  And the best part of that is the money is all tax free!  Obviously with a higher salary and/or frequent raises you could end up with much more than a million if you follow the 10% rule.

2. Investing Prudently While Taking Proper Risk

Time, and growth rate are the 2 most important factors in that equation.  An 8% growth rate is not anything too crazy, but you have to be invested long term, and have a vast majority of your money in stocks.  You cannot panic and take your money out if there is a crash.  You must trust in the market, and understand that stocks are the greatest wealth creation tool in the world.

 

3. Start Young

millionaire

Total contributions     $12,000                $36,000

* assumes an 8% growth rate    2. 

This visual further proves how important time and compounding is to your retirement account.  Starting young is a principle that everyone knows, they just dont follow it.  The power of compounding interest is amazing, and the younger you start the more powerful it is.  Even if you can’t reach the 10% goal, if you have an income source, you should be contributing to a retirement account.  For those of you who don’t have 40 years till retirement, you will need to save more than 10% to reach a million.

If you can apply discipline in your finances and in your investments, you can become a millionaire by the time you retire.    That is my plan.

 

By Jimmy Hancock

References

1. Boston Consulting Group. “Millionaire.” Wikipedia. Wikimedia Foundation, 17 June 2015. Web. 16 July 2015. <https://en.wikipedia.org/wiki/Millionaire>.

Matson Money. Who Wants to be a Millionaire Powerpoint. Mason, OH: Matson Money, 16 Jul. 2015. PPT.

How to Become an Entrepreneur

entrepreneurEveryone wants to be their own boss, make the rules, stop living under the proverbial “man,” but it can be a scary plunge to take. Owning your own business requires financial responsibility and risk that many people aren’t willing to take on, but if you are up for the challenge and are going to chase down the American dream then there are a few ways to keep things from coming to a screeching halt before they even start. The transition into the life of owning your own business can be an expensively slow and rocky road, but there are some things you can do to put yourself on the right path, from the start. Before you venture on this journey, here’s what you need to do prepare for the ride.

1. Payoff all your credit cards.

If you can’t pay off the balances on your credit cards now, you certainly won’t be able to once you start your business. You will also find yourself being tempted to use those cards to cover the expenses of your business. Use these as your last resort. Paying off those cards now will give you some room to use them later, but relying on them for too many things in the startup process can quickly put you in a tough spot.

2. Find your monthly budget, and then reduce it.

You need to keep track of your basic expenses for the month: rent, food, insurance, gas and so on. You can do this on our financial planning software called Matson Money Blue.  When you do this think about how this will change when you start your small business. Will you save money on gas with a shorter commute? Will you eat out more when you have less time? Once you have a number in front of you that highlights your current expenses, try to make that number smaller. This isn’t anyone’s favorite part, but you will appreciate the savings later.  Do “Fruity O’s” really taste that different from the real thing? It’s cutting back on little things that can send money your way from places you never thought about before. Also, it’s smart to make the transition to these saving habits months before you make your move into entrepreneurship to reduce the shock you may experience when you lose those extra 30 channels during baseball season.

3. Fill your piggy bank.

Before you take a single step towards your new business, you need to have a stock of money saved up. You should take the cost of your monthly expenses determined earlier, multiply that by six months, and set the bar there. You should have at least six months of your expenses saved up before you begin. With this, you need to make sure that you are realistic about how often you will be cracking into that piggy bank. A lot of people get the “do-it-yourself-bug” when they start their own projects. They think that they will do it all by themselves to save money.  This is not necessarily a bad thing, but know what you can do, and what you will need others to do. Will you hire an accountant? Will you need a handyman for small changes to your business space? Think about these future expenses when you are saving for your plunge.

4. Understand the benefits that you will lose.

One of the biggest changes that small business owners incur is the cost of individual health insurance. Think about how to reduce this cost.  Look at your retirement plans and understand how your investments will change when you don’t have a 401(k) matching plan to double your contributions.  Speaking of the 401(k), do not take money out of your 401(k) to pay for expenses that come up.   The penalties for doing so before age 59 1/2 are huge and make it not worth it.

5. Don’t get hasty and quit your job.

You need to give yourself time to startup your small business, and keeping your source of income can be a huge help during this time. There is a long list of expenses you need to pay before you can even think of opening up your doors, and it’s smart to keep your current job until you have those taken care of.

6. Make sure your spouse in on board, if applicable.

This is something I have recently learned.  Starting a business takes a lot of time, especially time that you would normally spend with your spouse if you are married.  Make sure they are on board with the idea and the money and time that will be spent.

Entrepreneurs are some of the hardest working, committed individuals in the workforce. It can be the most frustrating and rewarding experience at the same time, but taking the time to plan before you plunge can save you some of that frustration and bring forth more of the rewards.

by Jimmy Hancock and Financial Social Media



5 Basic Tips for Creating a Solid Retirement Plan

retirement planWe all know what the retirement picture is supposed to look like.  We spend our whole life working toward that magical retirement age when your golden years begin–the hobbies, the travel, spending time with your grandchildren.  However, with a rocky economy and volatility in the markets your picture might not be so clear.

Consider these basic tips to see to it that your retirement is spent doing what you love.

  1. Set your retirement goals:  Think about what you want your retirement picture to look like.  Does it involve living in a paid-off home, buying a motor home, or relocating to a house on the beach?  Do you want to donate to charities, or provide for your children and grandchildren?  What will it take to make it all come together?
  2. Start Planning now:  Whether you are just beginning or looking to retire in five years, start taking the steps to prepare now.  Establish IRA’s or participate in your employer-sponsored 403b or 401k plan and fund them with as much as you can.  One goal would also be to increase your contribution each year to help insure that you have enough money to retire.
  3. Reevaluate your life expectancy:  It is no secret that with medical technology and living a good healthy life we are living longer than ever.  According to the Society of Actuaries, a 65-year-old man has a 41% chance of living to age 85, and a 20% chance of surviving to age 90.  A 65-year-old woman has even better odds.  She has a 53% chance of living to age 85, and an impressive 32% chance of reaching age 90.  With these statistics in mind, ramping up your savings is more crucial than ever.
  4. Determine your Social Security benefits:  Did you know the longer you delay retirement, the larger your Social Security checks grow?  While you can officially start drawing funds at age 62, if you hold off until age 70, you’ll double your benefit amount.  Even if you wait until age 66, your Social Security checks will grow by one-third.  While working past age 65 might not appeal to you, the higher payout amount certainly should.  There are many more strategies to get the most from Social Security, especially if you are married.  To explore your options and determine when you will begin to draw Social Security benefits, visit www.SSA.gov.  They even have an online retirement estimator to help guide your decision.
  5. Work with a trusted Financial Coach:  If you really want to get the best out of your retirement plan, it’s best to place it in the hands of a capable retirement specialist who will coach you through the process, recommend appropriate investment tools, offer practical advice on savings, and keep an eye on your retirement portfolio.  For more information on working with a coach versus an planner click on the tab at the top of this page called Why You Need a Financial Coach.

We hope this has been helpful to you.  If you would like more information click on the contact button and we will send you more information or set up a time to meet with you.

By Jim Hancock

Do You Qualify for this Investing Tax Credit?

tax credit

The Saver’s Credit: almost a well-kept secret?

It’s becoming increasingly difficult for low to middle-income families to save; however, the IRS allows a Saver’s Credit that could mean a $1,000 tax credit. Of course, it depends on the tax filer’s status as well as their adjusted gross income, or AGI.  The tax benefit is to increase the incentive for lower income families to put money away for retirement.  Every family that qualifies should be taking advantage of this bonus tax credit.

How it works…

To begin with, check the IRS site that outlines the different percentages allowable.

For example, for 2014, if your AGI is not more than $36,000, then you’re likely to qualify for an additional 50% tax credit.  This number increases annually for inflation.  For 2015 it will be $36,500.

Let’s say that you earned $36,000 for all of 2014, and your spouse was unemployed for the entire year. If you made a $2,000 contribution to your Qualified Plan (ie IRA, Roth IRA, 401K, 403B) for 2014, then you can receive that 50% tax credit which in this case is $1000 against any taxes owing or to add to your refund.

This tax credit is on top of the tax benefit you within the IRA such as being able to write off all contributions in a Traditional IRA.

But even if you made as much as $60,000, it’s likely you can still qualify for a 10% tax credit if you file jointly (If you file as ‘head of household, than the AGI maximum is $45,000).

To be eligible for the Saver’s Credit…

The IRS stipulates that you’re birth date comes before January 2nd, 1993; furthermore, if you’ve been a full-time student during the calendar year, or claimed as a dependent on another’s return, you are not eligible.

Don’t miss out on this too little known tax credit that can save you big money on your taxes this year.  Ask your accountant or investment coach more about it to see if you qualify.

By Financial Social Media and Jimmy Hancock

3 Reasons to Roll Over an Old 401K to an IRA

401kAfter leaving a company, former employees can usually opt to keep their 401K or move the money over into a Rollover IRA. The benefits of rolling over old employer 401ks often outweigh the negatives.

1. Opening up new opportunities
Most 401K or company-sponsored retirement plans offer only a small selection of mutual funds, target-date funds and company stock. With a Rollover IRA, a person can choose to invest in a wide variety of stocks, bonds, exchange-traded funds as well as mutual funds. Diversification is the key to investment success.

2. Avoiding tax complications
By rolling over an old 401K, a former employee does not have to worry about paying taxes or penalties to the IRS associated with early distributions from a retirement account. According to a recent study by Fidelity cited by a Forbes article, one in three people cash out their 401K plan when they leave a company or change jobs. People who take hardship withdrawals owe ordinary income taxes and an additional 10 percent penalty unless they qualify for an exemption.

3. Allowing the money to grow
A person who changes jobs should definitely enroll in a new 401K plan, especially if there is a company match. Just because it’s a good idea to contribute to a new money to a new plan doesn’t mean it’s a good idea to rollover an old 401K plan into a new 401K. In some cases, the plan administrator won’t allow it. A Rollover IRA can continue to grow due to compounded interest as long as the money is invested wisely.

Ultimately, the benefit of an IRA rollover is flexibility. Not only does a person have more investment options, but he or she can eventually choose to convert money from a Rollover IRA into a Roth IRA. Many people view the Roth IRA as the ultimate retirement investment account because the money can be withdrawn tax free in retirement.

By Financial Social Media

Tax Time IRA Answers

versesLet’s take down the age old question of “Should I invest in a Roth IRA or a Traditional IRA?”   Before I jump into this, you must know that neither one is a bad choice, and it all depends on your situation and goals.  Both accounts are considered “Qualified Accounts”, meaning they have tax advantages over a non qualified investment accounts.

Traditional IRA

Summary- A traditional IRA allows you to take the tax advantage in the year that you make contributions to the account.  It is used by people that need to lower their taxes now, and also by people who are in higher tax brackets.

Pro’s

  • – You get to write off your contributions you make each tax year from your Income.
  • – If you are not covered by a retirement plan at work, the income limit does not exist.  Meaning you can write off contributions no matter how much you make.

Con’s

  • – When you take the money out in retirement, you pay the full taxes on not only the money you put in, but the growth as well. (Assuming there is growth)
  • – You are required to take the money out and pay taxes beginning at age 70 1/2, this is called a Required Minimum Distribution.
  • – If you have a retirement plan at your work, you cannot write off contributions if your Adjusted Gross Income is more than $95,000.

 

Roth IRA

Summary- A Roth IRA allows you no advantage in the year of the contribution, but the money you take out in retirement or after death is completely tax free.   It is used by people with lower current tax rates and by those wanting tax free money in retirement or as an inheritance for their children/spouse.

Pro’s

  • – You get all of your money that you contributed plus all the growth of the account completely tax free after the age of 59 1/2.
  • – If you die, the money goes tax free to your beneficiaries.
  • – You have the option  of withdrawing up to the total of all your contributions made tax free at any age.

Con’s

  • – Your contributions do not lower your Adjusted Gross Income in the year contributed.
  • – If you make more than $191,000 as married filing jointly you cannot contribute to a Roth IRA.  ($129,000 for single or head of household)

 

Things to Consider

  • – You can open as many Roth IRA’s and Traditional IRA’s as you want, but be weary of annual fees.
  • – If your income is below $36,000 (Married Filing Jointly) then you probably qualify for the Retirement Savings Credit, which gives you up to 50% of your total contributions in the form of a tax credit.
  • – If you are married and your spouse is not working, you can contribute up to $5500 to an account for each of you for a total of $11,000 of tax advantaged investments for the year.
  • – If you believe your current tax bracket is significantly higher than it will be when you take the money out, then you should probably consider a traditional IRA.

The most important part of the decision should be your goals and priorities.  A Roth IRA will give you more long term assurance of tax free wealth, while a traditional IRA will help you to dodge big tax bills in the short term.   Also know that you have the option of having both a Roth and a Traditional IRA, and contributing to both each year.  It doesn’t have to be one or the other.

By Jimmy Hancock

 

Reference

IRS. “Retirement Topics – IRA Contribution Limits.” Retirement Topics – IRA Contribution Limits. IRS, 18 Feb. 2014. Web. 03 Aug. 2014. <http://www.irs.gov/Retirement-Plans/Plan-Participant%2C-Employee/Retirement-Topics-IRA-Contribution-Limits>.