As we move into November, it’s time to start looking ahead to 2013. That means it’s time to revisit your retirement plan contributions.
According to the IRS, the 2013 contribution limits for 401(k), 403(b), and 457(b) plans will increase from $17,000/year to $17,500/year.
For participants who are at least 50 years old, the “catch-up” contribution limit will remain unchanged at an additional $5,500/year.
Note that these limits also apply to the federal Thrift Savings Plan.
For a bit of historical perspective, here are the limits going back to 2005.
| Year | Limit | Catch-up |
|---|---|---|
| 2005 | $14,000 | $4,000 |
| 2006 | $15,000 | $5,000 |
| 2007 | $15,500 | $5,000 |
| 2008 | $15,500 | $5,000 |
| 2009 | $16,500 | $5,500 |
| 2010 | $16,500 | $5,500 |
| 2011 | $16,500 | $5,500 |
| 2012 | $17,000 | $5,500 |
| 2013 | $17,500 | $5,500 |
I’m not sure about you, but we’re already contributing the maximum allowable amount and will be increasing our contributions in 2013 to track this change.
Also: It’s worth noting that the 415(c) limit, which specifies the maximum combined contribution (employer + employee) is increasing from $50k to $51k. This is probably most relevant to high income self-employed individuals who are looking to maximize their retirement savings.
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