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Key retirement plan limits in 2013

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in Small Business Tax,Small Business Tax Deduction Strategies

The IRS recently announced cost-of-living adjustments for retirement plans in 2013. Here are some of the key limits.

 

Plan provision: Maximum annual dollar benefit for a defined benefit plan

Limit for 2012: $200,000

Limit for 2013: $205,000

 

Plan provision: Maximum dollar limit on additions to a defined contribution plan

Limit for 2012: $50,000

Limit for 2013: $51,000

 

Plan provision: Maximum amount of compensation take into account for qualified retirement plans

Limit for 2012: $250,000

Limit for 2013: $255,000

 

Plan provision: Dollar limit for definition of "key employee" in top-heavy retirement plan

Limit for 2012: $165,000

Limit for 2013: $165,000

 

Plan provision: Dollar limit for definition of highly compensated employee in qualified plan

Limit for 2012: $115,000

Limit for 2013: $115,000

 

Plan provision: Dollar limit for elective deferrals to a 401(k) plan

Limit for 2012: $17,000

Limit for 2013: $17,500

 

Plan provision: Dollar limit for catch-up contributions to a 401(k) plan

Limit for 2012: $5,500

Limit for 2013: $5,500

 

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