COST-OF-LIVING ADJUSTMENTS FOR 2013
Article
The IRS has announced the 2013 cost-of-living adjustments for various retirement plan dollar limits. The 2013 limits are as follows:
|
Limit |
2011 |
2012 |
2013 |
| Section 402(g) limit for 401(k) pre-tax contributions |
$16,500 |
$17,000 |
$17,500 |
| Section 414(v) catch-up contribution limit |
$5,500 |
$5,500 |
$5,500 |
| Section 401(a)(17) limit on annual compensation recognizable for retirement plan purposes |
$245,000 |
$250,000 |
$255,000 |
| Annual pre-tax contribution rate for participants at the compensation limit to reach the Section 402(g) contribution limit |
6.73% |
6.80% |
6.86% |
| Section 415 limit on annual additions to a defined contribution plan |
$49,000 |
$50,000 |
$51,000 |
| Section 415 limit on annual benefits under a defined benefit plan |
$195,000 |
$200,000 |
$205,000 |
| Compensation threshold for defining “Highly Compensated Employees” |
$110,000 (in 2010) |
$110,000 (in 2011) |
$115,0001 (in 2012) |
| Compensation threshold for officers to be “Key Employees”2 |
$160,000 |
$165,000 |
$165,000 |
| Social Security (OASDI) Wage Base |
$106,800 |
$110,100 |
$113,700 |
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