Higher Roth IRA income cutoffs. The AGI phase-out range for Roth IRAs will climb by $2,000 ($3,000 for couples) in 2014 to between $114,000 and $129,000 for singles and heads of household and $181,000 to $191,000 for married couples. However, people who earn above these limits can convert traditional IRA assets to a Roth.
Better access to the saver's credit. Retirement savers with slightly higher incomes will be eligible for the saver's tax credit in 2014, which can be worth as much as $1,000 for individuals and $2,000 for married couples who contribute to retirement accounts including 401(k)s and IRAs. The income limit will increase by $1,000 to $60,000 in 2014 for married couples filing jointly. Individuals earning up to $30,000 and heads of household earning up to $45,000 in 2014 may also qualify for the credit, up $500 and $750, respectively, from 2013. The saver's credit can be used to increase a taxpayer's refund or reduce the tax owed, and can be claimed in addition to the tax deduction for traditional 401(k) and IRA contributions. Saver's credits were claimed on nearly 6.4 million income tax returns in tax year 2011, but most of the credits were small, averaging $215 for joint filers, $166 for heads of household and $128 for single filers.