2013 contribution limits increased for some of the more popular retirement vehicles. IRS-2012-77, October 18, 2012:
- The elective deferral (contribution) limit for employees who participate in 401(k), 403(b), most 457 plans and the federal government’s “Thrift Savings Plan” increased $500.00.
- The catch-up contribution for age 50+ employees and who participate in 401(k), 403(b), most 457 plans and the federal government’s “Thrift Savings Plan” remains unchanged at $5,500.00.
- The annual contribution t an Individual Retirement Arrangement (IRA) increased $500.00 to $5,500.00.
- The deduction for making contributions to a traditional IRA was phased out for singles and head of households who are covered by a workplace retirement plan and have modified adjusted gross incomes (AGI) from $59,000 – $69,000 up $1,000 from 2012. For married couples filing jointly, in which the spouse who makes the IRA contributions is covered by a workplace retirement plan, increased $3,000.