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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.

Social Security benefits are based on an average of earnings contributed throughout a wage earner’s lifetime; so carefully reviewing your gross wage information is important. (Photo Credit: Fotolia.com)

The Social Security Administration (SSA) announced earnings and benefits statements are now available online at socialsecurity.gov.

“Our new online Social Security Statement is simple, easy-to-use and provides people with estimates they can use to plan for their retirement,” Commissioner Astrue said in a press release on the SSA’s website. “The online Statement also provides estimates for disability and survivors benefits, making the Statement an important financial planning tool. People should get in the habit of checking their online Statement each year, around their birthday, for example.”

The SSA advised people to check their Statements to ensure their earnings look correct. Social Security benefits are based on an average of earnings contributed throughout a wage earner’s lifetime; so confirming that your gross wages are accurate is important.

In February 2012, the SSA also announced they would resume mailing paper Statements to workers over age 60. They plan to begin mailing these to workers age 25 and older later this year.

To view the new tool, visit: socialsecurity.gov/mystatement

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Retirement Plan Dollar Limits to Increase in 2013

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

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