taxes
Retirement plan contribution limits
Taxes » Investment Taxes » Retirement Plan Contribution Limits
The Internal Revenue Service has different contribution limits for different types of retirement accounts, and keeping up with them can be challenging. If you are 50 or older, you are eligible to make additional catch-up contributions, adding to the confusion.
Below are the limits on 2012 retirement plan contributions for various plan types. You can make contributions for individual retirement accounts, or IRAs, all the way up to the tax filing deadline of April 15, 2013. We provide the 2013 amounts to help in your retirement planning.
Limits on contributions
| Plan type | 2012 limits | 2013 limits |
| IRA, traditional and Roth: |
Under age 50 | $5,000 | $5,500 |
Age 50 and older | $6,000 | $6,500 |
| Deferred contribution plans e.g., 401(k), 403(b) and 457 plans: |
Under age 50 | $17,000 | $17,500 |
Age 50 and older | $22,500 | $23,000 |
| SIMPLE plans: |
Under age 50 | $11,500 | $12,000 |
Age 50 and older | $14,000 | $14,500 |
| Retirement plan saver's tax credit (subject to income limits) | $1,000 | $1,000 |
| Social Security wage base | $110,100 | $113,700 |
In 2012, the maximum income limits for Roth IRA contributions increased a bit, going to $183,000 for married couples filing jointly and $125,000 for single taxpayers. For the 2013 tax year, the income limits are bumped up again at $188,000 for married couples and $127,000 for single taxpayers.
Individuals who want to convert a traditional IRA to a Roth account no longer face the $100,000 income limit. This law change means that even if you earn too much to contribute to a Roth IRA, you can contribute to a traditional IRA and then roll that traditional IRA money into a Roth.