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.
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