Submitted by tharris on
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.
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Benefit Limits Under the Internal Revenue Code and Social Security
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Description |
2012 limit |
2013 limit |
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Compensation Cap under 401(a)(17) |
$250,000 |
$255,000 |
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Elective Deferral Limitation under 402(g)(1) for elective deferrals for 401(k) plans, SEPs and 403(b) plans |
$17,000 |
$17,500 |
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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 |
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Defined Benefit Maximum |
$200,000 |
$205,000 |
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Defined Contribution Maximum |
$50,000 |
$51,000 |
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Highly Compensated Employee Compensation Limit
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$115,000
$165,000 |
$115,000
$165,000 |
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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 |
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SEP Compensation Threshold for Participation |
$550 |
$550 |
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$11,500 |
$12,000 |
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$17,000 |
$17,500 |
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IRA Maximum Deduction IRA Age 50 Catch Up |
$5,000 $1,000 |
$5,500 $1,000 |
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$110,100 |
$113,700 |
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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 |