On October 18, 2012, the IRS announced the cost of living adjustments affecting dollar limitations for pension plans and other retirement-related items for Tax Year 2013. In general, many of the pension plan limitations will change for 2013 due to the in the cost-of-living index. However, other pension plan limitations will remain unchanged.

On October 18, 2012, the IRS announced the cost of living adjustments affecting dollar limitations for pension plans and other retirement-related items for Tax Year 2013.  In general, many of the pension plan limitations will change for 2013 due to the in the cost-of-living index.  However, other pension plan limitations will remain unchanged. Details include:

The elective deferral (contribution) limit for employees who participate in 401(k), 403(b), most 457 plans, and the federal government’s Thrift Savings Plan is increased from $17,000 to $17,500.


The catch-up contribution limit for employees aged 50 and over who participate in 401(k), 403(b), most 457 plans, and the federal government’s Thrift Savings Plan remains unchanged at $5,500.


The income-phase out range for deduction for taxpayers making contributions to a traditional IRA is:

o   The income-phase out range for singles and heads of household who are covered by a workplace retirement plan and have modified adjusted gross incomes (AGI) are between $59,000 and $69,000, up from $58,000 and $68,000 in 2012. 

o   $95,000 to $115,000, for married couples filing jointly, in which the spouse who makes the IRA contribution is covered by a workplace retirement plan, up from $92,000 to $112,000 in 2012. 

o   $178,000 and $188,000, for married couples filing jointly with an IRA contributor who is not covered by a workplace retirement plan and is married to someone who is covered, up from $173,000 and $183,000 in 2012.

 

The AGI phase-out range for taxpayers making contributions to a Roth IRA is:

o   $178,000 to $188,000 for married couples filing jointly, up from $173,000 to $183,000 in 2012. 

o   $112,000 to $127,000 for singles and heads of household, up from $110,000 to $125,000 in 2012.

o   $0 to $10,000 for a married individual filing a separate return who is covered by a retirement plan at work, which did not increase from 2012.


The AGI limit for the saver’s credit (also known as the retirement savings contribution credit) for low- and moderate-income workers is:

o   $59,000 for married couples filing jointly, up from $57,500 in 2012

o   $44,250 for heads of household, up from $43,125 in 2012

o   $29,500 for married individuals filing separately and for singles, up from $28,750 in 2012.