Paldino Company CPA - "Success Starts with a Handshake"

Welcome to my blog page the purpose of which is to provide you with timely and relevant tax and accounting information. I intend to bring you information which you can use now to assist you in lowering you income taxes. I will when appropriate give you links to tax related web-sites, worksheets and check-list to assist you in meeting you recording keeping requirements and provide you with the information you need to prepare an accurate return and pay the least amount of tax you are legally required to pay. Please check back often and feel free to post your questions and comments















Saturday, April 27, 2013

2013 contribution limits increase for most major retirement plans


Are You Maximizing Your Retirement Account Tax Benefit?

Category:
Retirement



2013 marks a watershed year for contribution limit increases in many of the core retirement savings programs. Many of these contribution limit increases are established using a federal formula. While most annual limits stayed the same from 2011 to 2012, this is not the case for 2013. Here are current annual contribution limits for the more popular programs:
Retirement
Program
Current Year
2013
Last Year
2012
Change
Age 50 or over
to catch up
IRA: Traditional
$5,500
$5,000
+$500
add: $1,000
IRA: Roth
$5,500
$5,000
+$500
add: $1,000
IRA: Simple
$12,000
$11,500
+$500
add: $2,500
401(k), 403(b), 457 plans
$17,500
$17,000
+$500
add: $5,500

Take action

If you have not already done so, please consider:
  • reviewing and adjusting your periodic contributions to your retirement savings accounts to take advantage of the higher limits
  • setting up new accounts for a spouse or dependent
  • using this change as a chance to review the status of your retirement plan
  • reviewing contributions to other tax-advantaged plans like Flexible Spending Accounts (health care and dependent care) and pre-paid medical savings plans like HSAs (Health Savings Accounts)

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