Ask Kim


2013 Retirement Account Contribution Limits

Kimberly Lankford

You'll be able to stash more in a 401(k), IRA and Roth IRA next year.



How much can I contribute to my IRA and 401(k) next year? And will the income limit for Roth contributions rise?

SEE ALSO: Are You Saving Enough for Retirement?

The IRS just announced the new contribution limits for 2013, which increase slightly from 2012. The maximum you can contribute to a 401(k), 403(b), most 457s or the federal government’s Thrift Savings Plan rises from $17,000 to $17,500 in 2013. The catch-up contribution limit for people age 50 or older remains at $5,500.

For more information about boosting your 401(k) contributions, see How to Increase 401(k) Contributions.

Advertisement

You can also kick in more to your IRA in 2013. For both traditional IRAs and Roths, the maximum you can contribute rises from $5,000 to $5,500 (the catch-up contribution is still $1,000 for people age 50 or older, bringing their total to $6,500 in 2013). The income limit for contributing to a Roth also rises slightly -- from $183,000 to $188,000 for married couples filing jointly, and from $125,000 to $127,000 for singles and people filing as head of household. The amount you can contribute starts to phase out if your adjusted gross income is $178,000 or more for joint filers, and $112,000 for singles and heads of household.

There's no income limit for contributing to a traditional IRA, but there are income limits for deducting contributions. Those limits have also increased slightly. For details, see 2013 Pension Plan Limitations.

The income cut-off for the saver’s credit (officially called the Retirement Savings Contribution Credit) will also rise a bit. This credit is designed to encourage lower-income workers to save for retirement in a retirement savings plan, such as an IRA or a 401(k). To qualify for the credit, your adjusted gross income must be below $59,000 if married filing jointly (up from $57,500 in 2012), $44,250 for heads of household (up from $43,125) or $29,500 for singles or married couples filing separately (up from $28,750). The lower your income, the bigger the credit, up to $1,000. For more information about the saver’s credit, see A Tax Credit for Retirement Savers.

For more information about saving for retirement, see our Jump-Start Your Retirement Plan special report.

Got a question? Ask Kim at askkim@kiplinger.com.



Get Ask Kim by e-mail for FREE. Registered users on Kiplinger.com can sign up to receive more than 20 valuable updates. Register Now »

Editor's Picks From Kiplinger


More Sponsored Links


DISCUSS

Permission to post your comment is assumed when you submit it. The name you provide will be used to identify your post, and NOT your e-mail address. We reserve the right to excerpt or edit any posted comments for clarity, appropriateness, civility, and relevance to the topic.
View our full privacy policy


Advertisement

Market Update

Advertisement

Featured Videos From Kiplinger