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Retirement Plan Limitations for 2013

December 18, 2012

Each Year the IRS adjusts retirement plan limitations; learn what the new rates are for 2013.

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
Elective Deferrals $17,500 $17,000
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 Contributions $5,500 $5,000
IRA Catch-up Contributions* $1,000 $1,000
SIMPLE Deferrals $12,000 $11,500
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 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.

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