The Consumer Price Index for September 2012 was released. Now we have all the data needed to calculate 2013 401k and IRA contribution limits.
401k/403b/457 Elective Deferral Limit
401k/403b/457 contribution limit will go from $17,000 to $17,500 in 2013.
SIMPLE 401k and SIMPLE IRA plans have a lower limit. It will also go up by $500 from $11,500 to $12,000 in 2013.
Traditional and Roth IRA Contribution Limit
Because the Traditional and Roth IRA contribution limit will also go up by $500 from $5,000 to $5,500 in 2013, if you are maxing out all retirement contributions, prepare to contribute $1,000 more in 2013 if you are single, $2,000 more as a married couple filing jointly.
If you are self-employed, the total employer plus employee contributions to all defined contribution plans by the same employer will go up by $1,000 from $50,000 to $51,000 in 2013.
|Limit on employee contributions to 401k, 403b, or 457 plan||$17,000||$17,500||$500|
|Limit on age 50+ catchup contributions to 401k, 403b, or 457 plan||$5,500||$5,500||None|
|Traditional and Roth IRA contribution limit||$5,000||$5,500||$500|
|Traditional and Roth IRA age 50+ catchup contribution limit||$1,000||$1,000||None|
|SIMPLE 401k or SIMPLE IRA contributions limit||$11,500||$12,000||$500|
|SIMPLE 401k or SIMPLE IRA age 50+ catchup contributions limit||$2,500||$2,500||None|
|Maximum annual additions to all defined contribution plans by the same employer||$50,000||$51,000||$1,000|
|Highly Compensated Employee definition||$115,000||$115,000||None|
Get The Best Rate
Mortgage rates came back down! I saw rates below 4% for 30-year fixed, just over 3% for 15-year fixed, with no points and low closing cost. Let banks compete for your loan. Get up to 5 offers at LendingTree.com.