2013 Retirement Planning Key Numbers

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2013 Retirement Planning Key Numbers

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.

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