401k & IRA Contribution Limits Increase for 2013

In 2013, employees may make elective deferrals to their 401k of  up to $17,500  ($23,000  for taxpayers over the age of 50).   This limit applies to 403(b) and 457 plans also.

IRA and Roth IRA contribution limits increased by $500 dollars to a total of $5,500 ($6,500 for taxpayers over the age of 50).

Contributions phase out for Roth IRAs at AGIs of $178,000 to $188,000 for couples and $112,000 to $127,000 for singles.  The deduction phases out for regular IRAs from $95,000 to $115,000 for couples and $59,000 to $69,000 for singles.    More information on the IRA contribution limits can be found on the IRS website here – http://www.irs.gov/Retirement-Plans/Plan-Participant,-Employee/Retirement-Topics-IRA-Contribution-Limits