|
|
What are the retirement plan limits for 2012 & 2013?The tax laws are saver friendly and allow most people a way to save money in a tax deferred or tax free environment. Here is a table of the contribution limits for different retirement vehicles:
|
Year |
IRA& Roth IRA1 |
IRA& Roth IRA if over 50 1 |
Education Savings
Account |
401K, 403B & 457 plans 2 |
401K & 403B plans if over 50 2 |
Simple IRA’s 2 |
Simple IRA’s if over 50 2 |
SEP |
Individual (k)-Owner 401(k) 3 |
Defined Benefit Plan 4 |
|
2012 |
$5,000 |
$6,000 |
$2,000 |
$17,000 |
$22,500 |
$11,500 |
$14,000 |
$50,000 |
$50,000 |
>$110,000 |
|
2013 |
$5,500 |
$6,500 |
$2,000 |
$17,500 |
$23,000 |
$12,000 |
$14,500 |
$51,000 |
$51,000 |
>$115,000 |
1- Indexed for inflation after 2008
2- Indexed for inflation after 2008 (updated for inflation)
3-$5,500 additional deferral available for over 50
4-Defined Benefit Plans allow individuals to contribute over $115,000 to their retirement plan but you must have substantial income to do so. Please call us to find out more or download our white paper on defined benefit plans.
Note the changes are in bold and the SEP and Owner 401(k) includes employee and employer contributions. The SEP & Individual(k) maximums are based on high income self-employed businesses. Please call to find out the exact details for each plan.
Note there are special catch up provisions for people over 50 by the end of the tax year. These provisions allow you to put in even more into each of the plans listed above than people who are less than 50 years old. If you are turning 50 in 2013 or will be over 50 in 2013, check with your benefits plan administrator to see if they allow catch-up contributions (the extra amount for over 50). The contribution deadline is April 15th, 2013 for IRA’s for 2012. Please consult your tax or financial advisors to see if you are eligible for these different plans.
|
INDEX
|
©2013 Diversified Asset Management, Inc. All rights reserved.
|