New contribution limits for retirement accounts • Pay Taxes Later

Find out the IRS limits for 2013

The IRS has announced new contribution limits for retirement savings accounts, including increased contribution limits for 401(k), 403(b), and most 457 plans as well as higher income limits for IRA contribution deductibility. The new limits give you even more opportunity to save for retirement.

401k, 403(b), and most 457 plans

2012 2013
Age 49 and under $17,000 $17,500
Age 50 and older Additional $5,500 Additional $5,500

Roth and Traditional IRA contribution limits

2012 2013
Age 49 and under 100% of compensation, up to $5,000 100% of compensation, up to $5,500
Age 50 and older Additional $1,000 Additional $1,000

Traditional IRA modified adjusted gross income limit for partial deductibility

2012 2013
Single $58,000-$68,000 $59,000-$69,000
Married—Filing joint returns $92,000-$112,000 $95,000-$115,000
Married—Filing separately $0-$10,000 $0-$10,000
Non-active participant spouse $173,000-$183,000 $178,000-$188,000

Roth IRA modified adjusted gross income phase-out ranges*

2012 2013
Single $110,000 – $125,000 $112,000 – $127,000
Married—Filing joint returns $173,000 – $183,000 $178,000 – $188,000
Married—Filing separately $0-$10,000 $0-$10,000
* As of 2010, there is no income limit for taxpayers who wish to convert a traditional IRA to a Roth IRA.

Next Steps

If you are saving to the max in your workplace savings plan today, consider increasing your contribution in 2013 to the new plan limit of $17,500. If you are not saving to the maximum, consider increasing your contribution rate to help reach your retirement savings goals.

New contribution limits for retirement accounts