Higher 401(k), IRA Contribution Limits in 2013

You can put more money in your IRA and 401(k) accounts next year and get bigger tax deductions. Before year-end, make sure to change your payroll deduction instructions for 2013 to take advantage of the higher limits.

For 2013, the IRS just announced higher contribution limits for a range of retirement plans and gifts.

Traditional IRA or Roth IRA:

In 2013, you can contribute $5,500 to your Traditional or Roth IRA, up from $5,000.

If you are age 50 or over at anytime in 2013, that amount increases to $6,500.

401(k), 403(b), 457, or TSP:

In 2013, you can contribute $17,500 to your 401(k), 403(b), 457 or TSP, up from $17,000.

If you are age 50 or over at anytime in 2013, that amount increases to $23,000.

SIMPLE IRA:

In 2013, you can contribute $12,000 to your SIMPLE IRA, up from $11,500.

If you are age 50 or over at anytime in 2013, that amount increases to $14,500.

Gift Exclusion:

In 2013, you can gift $14,000 to another person using the annual gift tax exclusion ($28,000 for couples).  That’s an increase from $13,000 in 2012.

About Mari Adam

Mari Adam, Certified Financial Planner™ and President of Adam Financial Associates Inc, has been helping individuals and families chart their financial futures for over twenty-five years. Have a question about your financial situation? Ask Mari!

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