Retirement Plan Dollar Limits to Increase in 2013



retirement, nest egg

Retirement savings dollar limits are increasing in 2013

In 2013, the IRS is increasing dollar limits for many types of retirement savings accounts due to increase in the cost-of-living. Below is a list of the retirement savings programs that will have an increase and their new 2013 maximum dollar limit:

  • Defined Benefit Plans: $205,000 annual benefit
  • Defined Contribution Plans: $51,000 annual addition
  • Annual Compensation Limit: $255,000
  • Elective Deferrals: $17,500 annual exclusion
  • Deferred Compensation Plans: $17,500 (applies to nonprofits and state and local governments)
  • ESOP Five-Year Distribution Period: $1,035,000 in 2013; $205,000 will be the dollar amount used to determine the lengthening of the distribution period in 2013
  • Government Plans: $380,000 annual compensation limit
  • SIMPLE Accounts: $12,000 annual salary deferral

For more information on 2013 changes and how they will affect your tax plan, contact H&S Companies today.