IRS Raises Retirement Contribution Limits

All,

This story made the rounds a couple of weeks ago.  In case you didn’t catch it, the IRS has changed retirement plan contribution limits for 2013. The gist is republished here:

Retirement Plans

The contribution limit for employees who participate in 401(k), 403(b) and some other plans will increase to $17,500 from $17,000. The “catch-up” contribution limit for workers age 50 and above remains unchanged, at $5,500.

For taxpayers making deductible contributions to traditional individual retirement accounts, the upper income limit rises to $115,000 from $112,000 for married couples filing jointly ($69,000 for singles), if the worker is covered by a workplace retirement plan.

For an IRA contributor who is not covered by a workplace retirement plan and is married to someone who is covered, the upper income limit rises to $188,000 of modified adjusted gross income (AGI) from $183,000.

For taxpayers making contributions to a Roth IRA, the upper income limit is $188,000 of AGI for married couples filing jointly ($127,000 for singles), up from $183,000 in 2012.

Gift Tax

The annual exclusion for gifts rises to $14,000, the first increase in several years. Next year taxpayers may make tax-free gifts up to $14,000 to as many different individuals as they desire, up from $13,000 this year.

The rest of the WSJ story is here.

Best,

James