Official 2013 Retirement Plan inflation adjustments

By on Dec 10, 2012 in Uncategorized | 0 comments

The IRS has announced many cost-of-living
adjustments (COLAs) that apply to retirement benefit plan limitations. Below
are selected COLAs for 2013, compared to their 2012 levels.

  • Limit on
    elective deferrals to 401(k), 403(b), and 457 plans — $17,500, up from $17,000
  • Traditional
    and Roth IRA contribution limit — $5,500, up from $5,000
  • Maximum
    SIMPLE contributions — $12,000, up from $11,500
  • Limit on
    annual additions to defined contribution plans — $51,000, up from $50,000
  • Maximum
    annual benefit accrued under a defined benefit plan — $205,000, up from
    $200,000
  • Compensation
    limit for qualified plan purposes — $255,000, up from $250,000
  • Traditional
    IRA deduction – begins to phase out at Modified Adjusted Gross Income (MAGI) of
    $95,000 for a 
    married couple filing jointly, up from $92,000 (single or head of household
    filers: $59,000, up from $58,000)
  • MAGI
    phase-out range for Roth IRA contributions — $178,000 to $188,000, up from
    $173,000 to $183,000 (married filing jointly); singles and heads of households:
    $112,000 to $127,000, up from $110,000 to $125,000
  • MAGI
    limit for the Retirement Saver’s credit — $59,000 for married couples filing
    jointly, up from $57,500 ($29,500 for singles and heads of households, up from
    $28,750)

Limits on catch-up contributions remain the
same for 2013: for IRAs, the limit is $1,000; for 401(k) and 403(b) plans,
$5,500; and for SIMPLE plans, $2,500.

If you have any questions regarding the limitations
and how they apply to you, feel free to contact us. We’re here to help.