The IRS has released its new plan contribution limits for next year. Here’s what you’ll need to know for 2013.
These benefits-related updates are culled from the much-longer IRS news relase:
- Contributions toward 401(k), 403(b) and 457 plans. Employees can contribute up $17,500 come next year, a $500 increase over 2012.
- Catch-up contributions. Workers 50 years and older can still only contribute $5,500.
- Maximum contribution. There is a $1,000 increase in what what can be added to a defined contribution plan, from $50,000 to $51,000.
- Maximum pension benefits. Similarly, there’s a $5,000 increase in the annual benefit limit for defined benefit plans, from $200,000 to $205,000.
- Benefits calculation. The amount of employee compensation that can be considered in calculating contributions to defined contribution plans will increase from $250,000 to $255,000.
- Highly compensated employee definition. The earning threshold used to define a highly compensated employee will increase from $110,000 to $115,000.