Retirement Plan Limits

January 15, 2013 By Shane Roberts

Retirement-Plan-LimitsThe 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.

Shane Roberts

Shane Roberts

Since his dream of playing in the NBA didn’t quite pan out, Shane went with his second career choice and became a CPA. After spending two years working in industry for public and private companies he made the move to Cook Martin Poulson and public accounting, and has loved every minute of it.

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