The IRS has announced many cost-of-living adjustments (COLAs) that apply to retirement benefit plan limitations. Below are selected COLAs for 2013, compared to their 2012 levels.

  • Limit on elective deferrals to 401(k), 403(b), and 457 plans — $17,500, up from $17,000
  • Traditional and Roth IRA contribution limit — $5,500, up from $5,000
  • Maximum SIMPLE contributions — $12,000, up from $11,500
  • Limit on annual additions to defined contribution plans — $51,000, up from $50,000
  • Maximum annual benefit accrued under a defined benefit plan — $205,000, up from $200,000
  • Compensation limit for qualified plan purposes — $255,000, up from $250,000
  • Traditional IRA deductions — begins to phase out at Modified Adjusted Gross Income (MAGI) of $95,000 for a married couple filing jointly, up from $92,000; single or head of household filers: $59,000, up from $58,000
  • MAGI phase-out range for Roth IRA contributions — $178,000 to $188,000, up from $173,000 to $183,000 (married filing jointly); singles and heads of households: $112,000 to $127,000, up from $110,000 to $125,000
  • MAGI limit for the Retirement Saver’s credit — $59,000 for married couples filing jointly, up from $57,500; singles and heads of households: $29,500, up from $28,750

Limits on catch-up contributions remain the same for 2013: for IRAs, the limit is $1,000; for 401(k) and 403(b) plans, $5,500; and for SIMPLE plans, $2,500.

If you have any questions regarding the limitations and how they apply to you, contact us.