September CPI-W saw an increase of 0.5% from the previous month. This made the Q3 average CPI-W 1.7% higher than the previous year. As a result, 2013 Social Security COLA increase will be 1.7%. Previously I estimated it would increase by 1.6%.
September CPI-U was 0.4% higher than August. Calculated from the Q3 average CPI-U and a rounding floor, the inflation adjusted 2013 401k, 403b, and 457 contribution limit will be $17,500, $500 higher than in 2012.
The SIMPLE 401k contribution limit will go from $11,500 in 2012 to $12,000 in 2013, also $500 higher.
Not calculated from September CPI but closely related to the 401k contribution limit is the 2013 IRA contribution limit. It will also go up by $500 from $5,000 in 2012 to $5,500 in 2013.
The age 50 catch-up limits remain unchanged at $5,500 for 401k, 403b and 457 plans, $2,500 for SIMPLE plans, $1,000 for IRA.
The maximum addition to all qualified defined contribution plans from the same employer will go up $1,000 from $50,000 in 2012 to $51,000 in 2013.
Separately, the Social Security Administration announced that the maximum wages subject to Social Security tax (the "Wage Base") will go up from $110,100 in 2012 to $113,700 in 2013.
[Photo credit: Flickr user Walmart Stores]