Have The Pension Plan Limits Increased In 2013?
Yes, Pension Plan Limitations have increased. The maximum amount that an employee may elect to defer to an Code Sec. 401(k) cash or deferred compensation plan is $17,500 in the 2013 tax year (up from $17,000 in 2012). The maximum amount that an employee/participant may elect to defer to a savings incentive match plan for employees (SIMPLE plan) remains at $12,000. The limitation on total annual contributions to defined contribution plans is $51,000 (up from $50,000 in 2012). The annual benefit limit for defined benefit plans is $205,000 (up from $200,000 in 2012). The limitation on deferrals for Code Sec. 457 deferred compensation plans of state and local governments and tax-exempt organizations increases from $17,000 to $16,500 in 2012. The limitation used in the definition of a highly compensated employee remains the same from $110,000 to $115,000 in 2013.
Note If you need professional help with "Retirement Planning" or have other tax questions, we can help you find a local licensed CPA for a free, no-obligation consultation.