Official 2013 Retirement Plan Inflation Adjustments

The IRS has announced many cost-of-living adjustments (COLAs) that apply to retirement benefit plan limitations. Below are selected COLAs for 2013, compared to their 2012 levels.

· Limit on elective deferrals to 401(k), 403(b), and 457 plans - $17,500, up from $17,000. 

· Traditional and Roth IRA contribution limit - $5,500, up from $5,000

· Maximum SIMPLE contributions - $12,000, up from $11,500

· Limit on annual additions to defined contribution plans - $51,000, up from $50,000

· Maximum annual benefit accrued under a defined benefit plan - $205,000, up from $200,000 

· Traditional and Roth IRA contribution limit - $5,500, up from $5,000 

· Maximum SIMPLE contributions limit - $12,000, up from $11,500 

· Maximum annual benefit accrued under a defined benefit plan - $205,000, up from $200,000 

· Compensation limit for qualified plan purposes - $255,000, up from $250,000 

· Traditional IRA deduction - begins to phase out at Modified Adjusted Gross Income (MAGI) of $95,000 for a married couple filing jointly, up from $92,000 (single or head of household filers: $59,000, up from $58,000) 

· MAGI phase-out range for Roth IRA contributions - $178,000 to $188,000, up from $173,000 to $183,000 (married filing jointly); singles and heads of households; $112,000 to $127,000, up from $110,000 to $125,000 

· MAGI limit for Retirement Saver’s credit - $59,000 for married couples filing jointly, up from $57,500 ($29,500 for singles and heads of households, up from $28,750)

Limits on catch-up contributions remain the same for 2013: for IRAs, the limit is $1,000; for 401(k) and 403(b) plans, $5,500; and for SIMPLE plans, $2,500.