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?