The IRS has come out with the new limits on 401(k) and other retirement plans for 2013. Workers will be able to defer an additional $500 into their 401(k) plans this year. The contribution limit will increase from $17,000 in 2012 to $17,500 in 2013. The catch-up contribution limit for employees age 50 and older will remain unchanged at $5,500.
The total limitation for defined contribution plans is also increased in 2013 from $50,000 to $51,000, while the annual compensation limit is increased from $250,000 to $255,000.
The IRA contribution limit will also increase by $500 from $5,000 in 2012 to $5,500 in 2013. The catch-up limit will remain the same with those aged 50 and older still able to contribute and additional $1,000.