401(k), 403(b), and 457(b) Contribution Limits for 2013
Does your employer offer a retirement plan such as a 401(k), 403(b), or 457(b)? If so, then you might be interested in knowing that the contribution limits for these account types has increased for 2013.
This means that individuals under age 50 can contribute up to $17,500 to their 401(k) account this coming year, up from last year’s limit of $17,000. And if you’re over age 50, you can contribute an extra $5,500 toward your retirement this year.
Beyond the above, the aggregate limit (employer + employee contributions), which is specified by Section 415(c)(1)(a) of the Internal Revenue Code, has increased from $50k/year to $51k/year. This is the so-called 415(c) limit and, while it doesn’t affect many of you, it does have an impact on some people (especially if you’re self-employed and have a high income).
Note that 403(b) and 457(b) plans, as well as the Thrift Savings plan, are subject to the same contribution limits, so those of you in the non-profit, educational, and public sectors will likewise be able to save a bit more this year.
Are you planning on increasing your retirement contributions in 2013?
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Filed under: Retirement, Saving & Investing, Taxes
About the author: Nickel is the founder and editor-in-chief of this site. He's a thirty-something family man who has been writing about personal finance since 2005, and guess what? He's on Twitter!
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December 27th, 2012 at 12:04 pm
I’d LOVE to increase my retirement contributions, but it seems as if we’ll be paying significantly higher taxes in 2013, and I’m not sure if we’ll be able to do much of anything. When Social Security taxes were temporarily decreased over the last couple of years (by 2%) we were able to add to our retirement contributions, but when that goes away that will also be a blow. It’s tough not knowing what will happen with other taxes. More and more we’re feeling squeezed with living expenses, and it’s tough to find any more ways to cut back since we’re pretty lean already.
December 30th, 2012 at 2:00 pm
We are awaiting the final episode of the fiscal cliff drama to play out before deciding on extra 401K contributions.
I think the roth is climbing to 5500. Probably will max. that out.