2013 COLAs for Retirement Plans

by Michael Popeck 7. November 2012 09:13

Each year, the IRS announces cost-of-living adjustments affecting limitations for pension plans and other retirement-related items. For 2013, many of the statutory thresholds that trigger increases in the cost-of-living index were met, while other limitations will remain unchanged. Some of the key highlights include the elective deferral (contribution) limit for employees that participate in 401(k), 403(b), most 457 plans and the federal government’s Thrift Savings Plan increased from $17,000 to $17,500; catch-up contribution limit for employees aged 50 and over in 401(k), 403(b), most 457 plans and Thrift Savings Plan remains unchanged; Individual Retirement Arrangement (IRA) limit increases from $5,000 to $5,500, among other important changes.

You can see the full list of changes in the chart below. If you have any question regarding any possible changes to your retirement plan contact a Urish Popeck retirement plan specialist, or take a look at how we can help you successfully manage your retirement plan.

Code Section

2013

2012

2011

2010

401(a)(17)/404(l) Annual Compensation

       $255,000

       $250,000

       $245,000

       $245,000

402(g)(1) Elective Deferrals

         17,500

         17,000

         16,500

         16,500

408(k)(2)(C) SEP Minimum Compensation

               550

               550

               550

               550

408(k)(3)(C) SEP Maximum Compensation

       255,000

       250,000

       245,000

       245,000

408(p)(2)(E) SIMPLE Maximum Contributions

         12,000

         11,500

         11,500

         11,500

409(o)(1)(C) ESOP Limits

 1,035,000
205,000

 1,015,000
200,000

 985,000
195,000

 985,000
195,000

414(q)(1)(B) HCE Threshold

       115,000

       115,000

       110,000

       110,000

414(v)(2)(B)(i) Catch-up Contributions

            5,500

            5,500

            5,500

            5,500

414(v)(2)(B)(ii) Catch-up Contributions

            2,500

            2,500

            2,500

            2,500

415(b)(1)(A) DB Limits

       205,000

       200,000

       195,000

       195,000

415(c)(1)(A) DC Limits

         51,000

         50,000

         49,000

         49,000

416(i)(1)(A)(i) Key Employee

       165,000

       165,000

       160,000

       160,000

457(e)(15) Deferral Limits

         17,500

         17,000

         16,500

         16,500

1.61-21(f)(5)(i) Control Employee

       100,000

       100,000

         95,000

         95,000

1.61-21(f)(5)(iii) Control Employee

       205,000

       205,000

       195,000

       195,000

219(b)(5)(A) IRA Contribution Limit

            5,500

            5,000

            5,000

            5,000

219(b)(5)(B) IRA Catch-up Contributions

            1,000

            1,000

            1,000

            1,000

Taxable Wage Base for Social Security

       113,700

       110,100

       106,800

       106,800

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