2013 Cost of Living Adjustment to Retirement Plan Limits
The IRS announced the annual cost of living adjustments for certain limitations with respect to contributions and benefits for retirement plans. The Salary Deferral limit is increased to $17,500, the Defined Contribution plan maximum addition is increased to $51,000, the Defined Benefit plan benefit limit is increased to $205,000, the maximum compensation limit for plan contributions and benefits is increased to $255,000, and the maximum deductible IRA contribution is increased to $5,500. The table below shows the significant limits for 2012 and 2013.
|
Limit |
2012 |
2013 |
|
Salary Deferral Limit 401(k), 403(b), 457(b) Plans [Code §402(g)]
|
$17,000 |
$17,500 |
|
Catch-up Limit for 401(k), 403(b), & 457(b) Plans For participants age 50 and over
|
$5,500 |
$5,500 |
|
Maximum Annual Addition Defined Contribution Plan [Code §415(c)]
|
$50,000 |
$51,000 |
|
Maximum Annual Benefit from Defined Benefit Plan [Code §415(b)]
|
$200,000 |
$205,000 |
|
Maximum Annual Compensation for Retirement Plan Benefits & Contributions [Code §401(a)(17)] |
$250,000 |
$255,000 |
|
Highly Compensated Employee (HCE) Compensation [Code §414(q)]
|
$115,000 |
$115,000 |
|
Top Heavy Key Employee Compensation [Code §416(i)(1)]
|
$165,000 |
$165,000 |
|
Maximum Deductible IRA Contribution
|
$5,000 |
$5,500 |
|
|
|
|
For information call: Jeff Bragdon (412) 454-0233 or Mike Lloyd (412) 454-0225