IRS Announces Increased Contribution Limits for Qualified Retirement Plans
Posted by: Colleen Kaminsky, CPA
The Internal Revenue Service announced on October 18th that it is raising the contribution limit for employees participating in 401(k), 403(b), most 457 plans and the federal government’s Thrift Savings Plans.
Beginning in 2013, the contribution limit will be raised from $17,000 to $17,500. The catch-up contribution for individuals participating in these plans who are 50 years old and above will remain at $5,500. The change in the contribution limitation was triggered by the cost-of-living index rising to a statutory threshold.
Deduction phase-out ranges will change as well, so please contact a Zinner professional for more information on how to maximize your 2013 tax planning opportunities.