The IRS has increased the maximum contribution limits for contributions made for 2013 to the following:
- Traditional/IRA Rollover: $5,500 ($6,500 if you are 50 years old or older)
- Roth IRA: $5,500 ($6,500 if you are 50 years old or older)
- SIMPLE IRA: $12,000 ($14,500 if you are 50 years old or older)
- SEP IRA: $51,000 ($51,550 if you are 50 years old or older)
The IRS also announced that for 2013 the elective contribution limit for your 401k will be $17,500 or 3% more than last year. If you’re 50 years old of older you can add another $5500 per year. This “catch up” provision is unchanged from last year.
In general, many of the pension plan and qualified plan limitations changed for 2013 because the increase in the cost-of-living index met the statutory thresholds that trigger their adjustment.
Be sure to contact your HR or 401k administrator to adjust your contribution to take advantage of these changed limits.
If you make IRA contributions before April 15, 2013 for tax year 2012 the old contribution limits apply.
For more information please refer to Publication 590 at www.irs.gov.
