2013 401(k) limit: $17,500; catchup unchanged

[ziggy29]

IRS raises 401(k) contribution limit to $17,500 - Oct. 18, 2012

The tax-free contribution limit for retirement plans will increase to $17,500 for 2013, up from $17,000 this year, the IRS announced Thursday.

...

However, the catch-up contribution limit, which is the additional amount of tax-free money employees over 50 can contribute to their retirement plans -- on top of the $17,500 that any employee can contribute -- remains unchanged at $5,500.

From what I've read, the IRA limits are also expected to be upped by $500, from $5,000 to $5,500. HSA contribution limits are already published for 2013, at $3,250 for individual and $6,450 for family plans (up $150 and $200 respectively from 2012).

 

[FUEGO]

Sweet! $2000 more tax deferral opportunities for our household in 2013, plus maybe $6450 for doing and HSA. Not only won't we pay any federal income tax*, we might get a big fat refund due to child tax credits. America is truly great.

* unless the Bush cuts are not continued in substantially similar form

 

[SumDay]

Don't the FSA (Flexible Spending Account) limits kick in 2013? I seem to recall it's $2,500. Glad we had DS#2's lasik surgery done last year.

 

[NosmoKing]

Yep, I read $2500 limit on FSA's for 2013 as well...

 

[nun]

Just to be complete the rise applies to 403b and 457 as well.

 

[2035]

Yippee! $5,500 for IRAs too!

 

[2035]

http://www.irs.gov/Retirement-Plans...lar-Limitations-on-Benefits-and-Contributions

 

[Triplet Dad]

IRS raises 401(k) contribution limit to $17,500 - Oct. 18, 2012



From what I've read, the IRA limits are also expected to be upped by $500, from $5,000 to $5,500. HSA contribution limits are already published for 2013, at $3,250 for individual and $6,450 for family plans (up $150 and $200 respectively from 2012).

Hi, so the $17,500 total figure...is that plus your company match? or combined with personal pre-tax savings. If your company matches 50% can you put in another $8750? Thanks!

 

[Alan]

Hi, so the $17,500 total figure...is that plus your company match? or combined with personal pre-tax savings. If your company matches 50% can you put in another $8750? Thanks!

$17,500 is your contribution. With a full 50% company match on that amount you will have a total of $26,250 annual contribution to your 401k, plus catch-up contributions are available if you are over 50.

 

[Nords]

Yippee! $5,500 for IRAs too!

$6500 for some of us more "experienced" investors...

 

[tmm99]

YAY!

 

[harry06880]

Hi all,
I have one question may sound stupid, I just retired this year and have a significant portion of my retirement cash in my taxable account. I have always contributed the max to my 401k(moved all to IRA at vanguard now). I will not be tapping my IRA for about 7-8 years. My question is can I continue to contribute the max even tho I don't have a 401k anymore? I would love to move some of that taxable cash to tax deferred over the next few years. I am 55 years old and the ball and chain 52.

just wondering ?
Thanks all in advance

 

[2035]

My question is can I continue to contribute the max even tho I don't have a 401k anymore? I would love to move some of that taxable cash to tax deferred over the next few years. I am 55 years old and the ball and chain 52.

just wondering ?
Thanks all in advance

You have to have earned income in order to contribute to retirement accounts.

 

[JoeWras]

Yep, I read $2500 limit on FSA's for 2013 as well...

We were discussing this at w*rk this week (it is medical benefit season -- and are rates are up -- another story).

Someone said that this was part of the new healthcare law. Someone shot back "no politics on this board". Wow, touchy. All he said was part of the new law. That's it.

Too much yelling in America today. I appreciate the level heads around here.

 

[MichaelB]

HSA contribution limits are already published for 2013, at $3,250 for individual and $6,450 for family plans (up $150 and $200 respectively from 2012).

Plus another $1K catchup for those over age 55

 

[Alan]

Hi all,
I have one question may sound stupid, I just retired this year and have a significant portion of my retirement cash in my taxable account. I have always contributed the max to my 401k(moved all to IRA at vanguard now). I will not be tapping my IRA for about 7-8 years. My question is can I continue to contribute the max even tho I don't have a 401k anymore? I would love to move some of that taxable cash to tax deferred over the next few years. I am 55 years old and the ball and chain 52.

just wondering ?
Thanks all in advance

If you have some earned income from this last year at work then you can contribute to your IRA this year, but after that you won't be be able to make any contributions, unless you or your wife has earned income. If one spouse has earned income then both can contribute to their IRA's.

 

[daystar]

I'm going to take advantage of the slightly increased 401K and Roth IRA limits for next year

 

[harry06880]

Thanks all,

looks like all I'll have is a dividend income for 2013, so will check with my tax guy to see if there is anything I can do.

thanks again

 

[rodi]

Yep, I read $2500 limit on FSA's for 2013 as well...

And my son is just starting braces... right when a higher limit would be more useful.

Oh well.

 

[Bimmerbill]

And my son is just starting braces... right when a higher limit would be more useful.

My ortho had a 0 interest payment plan. You can check to see if yours does, that way you can spread the pain over a few years to try to get it all under your FSA.

 

[67walkon]

So that means I need to work long enough next year to make $24,000, plus whatever little bit my employer might contribute. Or $25,000 if I get the extra $1,000 for being over 55.

Not bad planning. April 1 is my target date. I can make up to $25,000, put it all in the 401k and not have any taxes. As they said in Veggie tales, I like it, it's sneaky and it just might work.

 

[14thMed]

So that means I need to work long enough next year to make $24,000, plus whatever little bit my employer might contribute. Or $25,000 if I get the extra $1,000 for being over 55.

Not bad planning. April 1 is my target date. I can make up to $25,000, put it all in the 401k and not have any taxes. As they said in Veggie tales, I like it, it's sneaky and it just might work.

My plan too. I have to be employed on April 1st. to get the 2013 bonus.

 

[JoeWras]

So that means I need to work long enough next year to make $24,000, plus whatever little bit my employer might contribute. Or $25,000 if I get the extra $1,000 for being over 55.

Not bad planning. April 1 is my target date. I can make up to $25,000, put it all in the 401k and not have any taxes. As they said in Veggie tales, I like it, it's sneaky and it just might work.

So your employer lets you contribute 100% of pay?

You guys are pretty dang clever! Giving me some ideas.

 

[PatrickA5]

Be careful with the FSA plan and orthos. My FSA wouldn't let me pay upfront the full amount and then take the full reimbursement in the same year. They would only reimburse over the length of the service - which is usually a couple of years for braces. Check with your FSA administrator before funding your FSA if you are wanting to try to pay in full upfront.

 

[Alan]

Be careful with the FSA plan and orthos. My FSA wouldn't let me pay upfront the full amount and then take the full reimbursement in the same year. They would only reimburse over the length of the service - which is usually a couple of years for braces. Check with your FSA administrator before funding your FSA if you are wanting to try to pay in full upfront.

+1

When I retired I had 30 days to empty the FSA. However, I was allowed to use the full year's target even though I had only contributed 2 months worth.