Retirement Plan Dollar Limits to Increase in 2013

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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.