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IRS Announces 2013 Retirement Plan Contribution Limits

October 19, 2012

On October 18, 2012, the IRS announced the various adjustments applicable to retirement plan contribution limits for 2013. Many of the limitations will change for 2013 because the increase in the cost-of-living index met the statutory thresholds that trigger their adjustment.

The tables below show the 2012 and 2013 contribution limitations for 457 plans, 401 plans, and IRAs.

More details on the retirement plan limits are available from the IRS.

457 Plan Limits
Limitation 2013 2012
Annual Deferral Limit for 457 Plans $17,500 $17,000
“Pre-Retirement” Catch-Up Limit $17,500 ($35,000 total) $17,000 ($34,000 total)
“Age 50” Catch-Up Limit $5,500 ($23,000 total) $5,500 ($22,500 total)
401 Plan Limits
Limitation 2013 2012
401 Defined Contribution Plans - Annual Additions (§415(c)(1)(A)) $51,000 $50,000
401 Defined Benefit Plans - Maximum Annual Benefit* (§415(b)(1)(A)) $205,000 $200,000
401 Annual Compensation Limit** (non-grandfather/grandfather) (§401(a)(17))) $255,000/ $380,000 $250,000/ $375,000
Annual Deferral Limit for (§401(k) Plans (§402(g)) $17,500 $17,000
401(k) "Age 50" Catch-Up (§414(v)) $5,500 ($23,000 total) $5,500 ($22,500 total)
Traditional IRA & Roth IRA Contribution Limits
Limitation 2013 2012
Annual Contribution Limit $5,500 $5,000
“Age 50” Catch-Up Limit $1,000 $1,000

*Special limitations apply to defined benefit plans. Please contact your defined benefit plan administrator for additional information.

**OBRA 1993 provided a governmental exception for the maximum compensation limit that grandfathers certain employees under the 1993 compensation limit of $235,840. Employees eligible to participate in a governmental plan, utilizing the ICMA-RC plan document, prior to January 1, 1994, are subject to the maximum compensation limit of $235,840 as indexed and shown above as the "grandfather" limit. Employees eligible to participate in a governmental plan, utilizing the ICMA-RC plan document, after January 1, 1994, are subject to the maximum compensation limit of $150,000 as indexed and shown above as the "non-grandfather" limit.

 

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