News

 

10.19.2012 Benefit Limits and Contributions for 2013

BY: CATHERINE M. MARRIOTT

The Commissioner of Internal Revenue has adjusted the dollar limitations for benefits and contributions that apply to retirement plans. The Social Security Administration has also increased the Social Security taxable wage base. The following chart shows the 2013 limits and the expiring limits for 2012.

 

 

Benefit Limits Under the Internal Revenue Code and Social Security

 

Description

2012 limit

2013 limit

Compensation Cap under 401(a)(17)

$250,000

$255,000

Elective Deferral Limitation under 402(g)(1) for elective deferrals for 401(k) plans, SEPs and 403(b) plans

$17,000

$17,500

Catch Up Contributions for Individuals Age 50 and Older

 

For SIMPLE IRAs or SIMPLE 401(k) plans

$5,500

 

$2,500

$5,500

 

$2,500

Defined Benefit Maximum

$200,000

$205,000

Defined Contribution Maximum

$50,000

$51,000

Highly Compensated Employee Compensation Limit


Key Employee in Top-Heavy Plans Compensation Limit

$115,000

 

$165,000

$115,000

 

$165,000

ESOP Threshold for determining maximum account balance subject to 5-year distribution period

     Regular Limit

     Additional amount to lengthen 5-year period

 

 

$1,015,000

$200,000

 

 

$1,035,000

$205,000

SEP Compensation Threshold for Participation

$550

$550


SIMPLE IRA  Maximum Pre-Tax Contribution
 

$11,500

$12,000


Deferral Limit for Governments and Tax-Exempts (457(b))
 

$17,000

$17,500

IRA Maximum Deduction

IRA Age 50 Catch Up

$5,000

$1,000

$5,500

$1,000


Social Security Taxable Wage Base
 

$110,100

$113,700

Health Savings Account Maximum Contributions

   Family Coverage

   Single Coverage

   HSA Catch Up (55 and older)

 

$6,250

$3,100

$1,000

 

$6,450

$3,250

$1,000