The Internal Revenue Service announced increases in retirement-plan contribution limits for the 2013 tax year.
In 2013, taxpayers can contribute up to $17,500 in their 401(k), 403(b), most 457 plans and the the federal government’s Thrift Savings Plan, up from $17,000. The catch-up contribution for those over 50 remains the same at $5,500.
Also, the contribution limits for traditional and Roth IRAs have been increased to $5,500, up from $5,000. The catch-up contribution stays at $1,000.
The IRS increased these limits because “the increase in the cost-of-living index met the statutory thresholds that trigger their adjustment.”
The contribution phase-out limits for these accounts will also increase. Use the IRA contribution calculator to determine your contribution limits for traditional IRAs and Roth IRAs for tax year 2012.