The Internal Revenue Service (IRS) recently announced the annual Cost-of-Living Adjustments (COLA) for retirement plans and related limitations for the 2013 tax year. Several of the following limits have changed for 2013 compared to the 2012 limits.
| 2013 | 2012 | ||
Social Security Taxable Wage Base | $113,700 | $110,100 | |
Medicare Taxable Wage Base | No Limit | No Limit | |
Compensation (Plan Limit) | $255,000 | $250,000 | |
Compensation (SEP) | $550 | $550 | |
Defined Benefit Limit (415) | $205,000 | $200,000 | |
Defined Contribution Limit (415) | $51,000 | $50,000 | |
401(k) and 403(b) Contribution Limit | $17,500 | $17,000 | |
401(k) and 403(b) Catch Up Contribution Limit (over age 50) | $5,500 | $5,500 | |
SIMPLE Contribution Limit | $12,000 | $11,500 | |
SIMPLE Catch up Contribution Limit (over age 50) | $2,500 | $2,500 | |
Highly Compensated Employee Definition (prior year) | $115,000 | $115,000 | |
Maximum Deduction (% of Compensation) P/S and SEP Plans | 25% | 25% | |
IRA Contribution Limit (Traditional & Roth) | $5,500 | $5,000 | |
IRA Catch Up Contribution Limit (Over Age 50) | $1,000 | $1,000 |
For questions regarding your retirement plan, please contact any of the members of our Employee Benefit Plan Services Group.
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