- posted by KLR in the Business Blog
Each year, the IRS adjusts retirement plan limitations for cost of living increases as determined by inflation data obtained by the Bureau of Labor. For 2013, the following limitations apply to retirement plans:
|401(k), 403(b) and 457 Plans:||2013||2012|
|Catch-up Contributions *||$5,500||$5,500|
|Annual Defined Contribution Plan Limit||$51,000||$50,000|
|Annual Compensation Limit||$255,000||$250,000|
|Salary for Determining Highly Compensated Employee||$115,000||$115,000|
|Other Retirement Plan Limits:||2013||2012|
|IRA Catch-up Contributions*||$1,000||$1,000|
|SIMPLE Catch-up Contributions *||$2,500||$2,500|
|Defined Benefit Plan Limit||$200,000||$205,000|
* Catch-up contributions are allowed for participants who have or will have attained the age of 50 before the end of the plan year.
In addition, the deduction for taxpayers making contributions to a traditional IRA is phased out for singles or heads of household who are covered by an employer retirement plan and have modified adjusted gross income (AGI) between $59,000 and $69,000, up slightly from 2012.
For people filing married or jointly, the phase out range is $95,000 to $115,000 for 2013. The 2013 AGI phase out for taxpayers making contributions to a Roth IRA is $112,000 to $127,000 for singles or heads of household and $178,000 to $188,000 for married filing jointly.
To learn more about the 2013 IRS adjustments to retirement plans or if you have questions about your deferrals please contact Jessie Kanter or any member of our Employee Benefit Plan Services Team. Read more on employee benefit plans, marketplace trends and year-end planning on the KLR Business Blog.
Read Jessie’s latest blogs:
“Does Your Benefit Plan Have an Investment Committee?” Posted 12/11/12
“Does Your Benefit Plan Have an Investment Policy Statement?” Posted 12/10/12
“How to Plan for Your Year-End Audit” Posted 12/2/12