Cer­tain retire­ment plan and IRA lim­its are indexed for infla­tion each year, and many of the lim­its eli­gi­ble for a cost-of-liv­ing adjust­ment (COLA) have increased for 2013. Some of the key num­bers for 2013 are list­ed below, with the cor­re­spond­ing lim­it for 2012. (The source for these 2013 num­bers is IRS Infor­ma­tion Release IR-2012–77.)

Elec­tive Defer­ral Lim­its

2012

2013

401(k) plans

403(b) plans

SAR-SEPs* (include Roth Con­tri­bu­tion)

Less­er of $17,000 or 100% of participant’s com­pen­sa­tion

$22,500 if age 50 or old­er**

Less­er of $17,500 or 100% of participant’s com­pen­sa­tion

$23,000 if age 50 or old­er**

 

SIMPLE 401(k) plans

SIMPLE IRA plans*

 

Less­er of $11,500 or 100% of participant’s com­pen­sa­tion

$14,000 if age 50 or old­er

 

Less­er of $12,000 or 100% of participant’s com­pen­sa­tion

$14,500 if age 50 or old­er

 

IRA Con­tri­bu­tion Lim­its

2012

2013

Tra­di­tion­al & Roth IRAs

Less­er of $5,000 or 100% of earned income

 

$6,000 if age 50 or old­er

Less­er of $5,500 or 100% of earned income

 

$6,500 if age 50 or old­er

 

Defined Ben­e­fit Plan Annu­al Ben­e­fit Lim­its

2012

2013

Annu­al Lim­it per Par­tic­i­pant

Less­er of $200,000 or 100% of aver­age com­pen­sa­tion for high­est three con­sec­u­tive years

Less­er of $205,000 or 100% of aver­age com­pen­sa­tion for high­est three con­sec­u­tive years

 

Defined Con­tri­bu­tion Plan Lim­its (qual­i­fied plans, 403(b) plans, SEP plans)

2012

2013

Annu­al addi­tion­al lim­it per par­tic­i­pant (employ­er con­tri­bu­tions; employ­ee pre­tax, after-tax, and Roth con­tri­bu­tions, and for­fei­tures)

 Less­er of $50,000 or 100% (25% for SEP)of participant’s com­pen­sa­tion

 Less­er of $51,000 or 100% (25% for SEP)of participant’s com­pen­sa­tion

 

Retire­ment Plan Com­pen­sa­tion Lim­its

2012

2013

Max­i­mum com­pen­sa­tion per par­tic­i­pant that can be used to cal­cu­late tax-deductible employ­er con­tri­bu­tion (qual­i­fied plans/SEPs)

$250,000

$255,000

Com­pen­sa­tion thresh­old used to deter­mine a high­ly com­pen­sat­ed employ­ee

$115,000 (when 2012 is the look-back year)

$115,000 (when 2013 is the look-back year)

Com­pen­sa­tion thresh­old used to deter­mine a key employ­ee in a top-heavy plan

$1 for more than 5% own­ers

 

$165,000 for offi­cers

 

$150,000 for more than 1% own­ers

$1 for more than 5% own­ers

 

$165,000 for offi­cers

 

$150,000 for more than 1% own­ers

Com­pen­sa­tion thresh­old used to deter­mine a qual­i­fy­ing employ­ee under a SIMPLE plan

$5,000

$5,000

Com­pen­sa­tion thresh­old used to deter­mine a qual­i­fy­ing employ­ee under a SEP plan

$550

$550

 

Income phase­out range for deter­min­ing deductibil­i­ty for tra­di­tion­al IRA con­tri­bu­tions for tax­pay­ers:

2012

2013

1. Cov­ered by an employ­er-spon­sored plan and fil­ing as:

   

 

 

Single/Head of House­hold

$58,000 — $68,000

$59,000 — $69,000

Mar­ried fil­ing joint­ly

$92,000 — $112,000

$95,000 — $115,000

Mar­ried fil­ing sep­a­rate­ly

$0 — $10,000

$0 — $10,000

 

2. Not cov­ered by an employ­er-spon­sored retire­ment plan, but fil­ing joint­ly return with a spouse who is cov­ered by a plan

 

$173,000 — $183,000

 

$178,000 — $188,000

 

Income phase­out range for deter­min­ing abil­i­ty to fund a Roth IRA for tax­pay­ers fil­ing as:

2012

2013

Single/Head of House­hold

$110,000 — $125,000

$112,000 — $127,000

Mar­ried fil­ing joint­ly

$173,000 — $183,000

$178,000 — $188,000

Mar­ried fil­ing sep­a­rate­ly

$0 — $10,000

$0 — $10,000

 

 * - Must aggre­gate employ­ee defer­rals to all 401(k), 403(b), SAR-SEP, and SIMPLE plans for all employ­ers; 457(b) con­tri­bu­tions are not aggre­gat­ed. For SAR-SEPs, the per­cent­age lim­it is 25% of com­pen­sa­tion reduced by elec­tive defer­rals (effec­tive­ly a 20% max­i­mum con­tri­bu­tion).

** — Spe­cial catch-up lim­its may also apply to 403(b) and 457(b) plan par­tic­i­pants. 

Any tax advice includ­ed in this writ­ten or elec­tron­ic com­mu­ni­ca­tion was not intend­ed or writ­ten to be used, and it can­not be used by the tax­pay­er, for the pur­pose of avoid­ing any penal­ties that may be imposed on the tax­pay­er by any gov­ern­men­tal tax­ing author­i­ty or agency.