2013 Retirement Limits Increased
The U.S. Internal Revenue Service (IRS) has announced an increase in the maximum contribution limit for defined contribution and defined benefit retirement plans and other retirement-related items for tax year 2013.
Below are the key changes effective Jan. 1, 2013.
Defined Contribution Plans
- The elective deferral (contribution) limit for employees, who participate in 403(b) and most 457 plans, increases to $17,500 from $17,000.
- The catch-up contribution limit for those age 50 and older remains unchanged at $5,500. The catch-up contribution may be made beginning Jan. 1, 2013, by participants who will reach age 50 at any time during the year.
- The overall limit for defined contribution plan deferrals from all sources (employer and employee combined) increases to $51,000 per participant from $50,000.
- The amount of employee compensation limit that can be considered in calculating contributions to defined contribution plans increases to $255,000 from $250,000.
Saving for retirement and deferring income tax contribute to overall financial security.
If you would like more information on how these changes affect you and your retirement contributions or would like to learn more about retirement options, please join us for a Lunch & Learn session with Jill Vanderkam, Senior Financial Advisor with Valic, on Wednesday, Dec. 5, 2012 from 12:30 p.m. – 1:30 p.m. in SVC 5012.
Please register for the session via GEMS Self-Service>Learning and Development>Request Training Enrollment>Search by Course Number>BBL111.
If you have any questions, please contact the Benefits Representative from your Service Center or Regional HR Office.