2013 Pension Plan Limitations

                 

  
   
                2013 is going to be a year of several changes in regards to taxes. One having to do with Pension Plans. The IRS has announced that there will be limitations for pension plans and other retirement related items. The reason for the change is due to the increase in the cost of living index. Some of the changes discussed included:

  • The contribution limit for employees who participate in 401(k), 403(b), most 457 plans and the federal government's Thrift Savings Plan (TSP) is increased by 500 dollars.
  • The catch up contribution limit for employees aged 50 and over who participate in 401(k), 402(b) and most 457 plans and the Government's TSP remains unchanged.
  • The limit on contributions to your Individual Retirement Account (IRA) rises 500 dollars up from the previous year which is now 5,500.
  • The deduction for taxpayers making contributions to a traditional IRA is phased out for singles and head of households who are covered by a workplace retirement plan and have modified adjusted gross income ( AGI ) between 59,000 and 69,000 up from 58,000 and 68,000 in 2012.
  • For married couples filing jointly, in which the spouse who makes the IRA contribution is covered by the workplace retirement plan, the income phase-out range is 95,000 to 115,000, up from 92,000 to 112,000. For an IRA contributor who is not covered by a workplace retirement plan and is married to someone who is covered, the deduction is phased out if the couple's income is between 178,000 to 188,000 for married couple filing jointly up from 173,000 and 183,000.
  • The AGI limit for saver's credit for low and moderate-income workers is 59,000 for married couples filing jointly, up 2,500 from 2012; 44,250 for heads of household, up from 43,125 and 29,500 for married individuals filing separately and for singles, up from 28,750.
 
     

Comments

  1. jackjackFebruary 20, 2013 at 2:58 AM

    Yes, we all know that 2013 pension plans do have limitations. But do tell us how we could avoid these limitations from pension plans.

    ReplyDelete
  2. UnknownJune 3, 2015 at 5:27 AM

    Thank you for this informative post. I just want to share a good source for tax forms and tutorials - PDFfiller. It has a ton of tax and insurance forms. It helps me fill out a needed form neatly and gives me the option to esign. http://goo.gl/yoGwr2

    ReplyDelete

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