IRA and Retirement Plan Limits for 2013
Many IRA and retirement plan limits are indexed for inflation each year. On October 18, 2012, the IRS issued the inflation-adjusted numbers for 2013, and many of the limits have increased.
For example, the elective deferral limit for 401(k), 403(b), and 457(b) plans rises to $17,500 in 2013, up from $17,000 in 2012 (the catch-up limit remains unchanged at $5,500). The maximum IRA contribution increases to $5,500 in 2013, up from $5,000 in 2012 (the catch-up limit remains unchanged at $1,000). The phaseout ranges for determining the deductibility of traditional IRA contributions, and for determining whether an individual can contribute to a Roth IRA, have also increased for 2013.