IRS announces 2013 retirement plan limits

 

To make it possible for voluntary retirement savings to keep up with inflation, the various numerical limits embedded within qualified retirement plans are indexed for inflation. In October the IRS announced the numbers that will apply in 2013, as shown in the following table:

 

Item

2013 limit

401(k) and 403(b) employee deferral limit

$17,500

457 employee deferral limit (most plans)

$17,500

Catch-up contribution limit

$5,500

Defined contribution dollar limit

$51,000

Defined benefit dollar limit

$205,000

Compensation limit

$255,000

Highly compensated employee income limit

$115,000

Key employee in a top-heavy plan

$165,000

 

Catch-up contributions are permitted by those employees who are 50 or older during the calendar year.

 

Saving for retirement is probably never harder than during rocky economy times. Itís those times when it is also most important.

 

(December 2012)

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