On October 18, 2012, the IRS announced cost of living adjustments affecting dollar limitations for pension plans and other retirement-related items for the tax year 2013. Many but not all of the limitations have changed.
Below are the 2013 plan limitations:
2013 Retirement Plan Limits
| | 2012 | 2013 |
| 401(k),403(b) and 457(b) Deferral Limits | $17,000 | $17,500 |
| 401(k) and 403(b) Catch-up Deferral Limits | $5,500 | $5,500 |
| Annual Limitation on Compensation | $250,000 | $255,000 |
| Defined Contribution Limitation | $50,000 | $51,000 |
| Defined Benefit Limitation | $200,000 | $205,000 |
| Highly Compensated Employee Compensation Threshold | $115,000 | $115,000 |
| Key Employee Compensation - Officer Threshold | $165,000 | $165,000 |
| SIMPLE Deduction | $11,500 | $12,000 |
| SIMPLE Catch-up Contribution | $2,500 | $2,500 |
| IRA Contribution Limit | $5,000 | $5,500 |
| IRA Catch-up Contribution Limit | $1,000 | $1,000 |
| Social Security Wage Base | $110,100 | $113,700 |
For more information, please contact:
Antoinette M. Pilzner 248.220.1341
apilzner@mcdonaldhopkins.com
Dale R. Vlasek 216.348.5452
dvlasek@mcdonaldhopkins.com
John M. Wirtshafter216.348.5833
jwirtshafter@mcdonaldhopkins.com
or any of our Employee Benefits attorneys by clicking on the link below:
Benefit programs should be a win-win for employers and employees. We strive to accomplish that goal in the design, implementation and operation of sophisticated benefit and executive compensation programs – qualified and non-qualified retirement programs and health and welfare plans. Our employee benefits team has a long track record of working to maximize the efficiency and economic feasibility of each program.
Carl J. Grassi, President
600 Superior Avenue, East, Suite 2100, Cleveland, Ohio 44114
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IRS CIRCULAR 230 DISCLOSURE:
To ensure compliance with requirements imposed by the
Internal Revenue Service, we inform you that any tax advice
contained in this communication (including any attachments),
was not intended or written to be used, and cannot
be used, by any taxpayer for the purpose of (1) avoiding
any penalties under the Internal Revenue Code or (2) promoting,
marketing or recommending to another party any
transaction matter addressed herein.
© 2012 McDonald Hopkins LLC All Rights Reserved.
This Alert is designed to provide current information for our clients, friends
and their advisors regarding important legal developments. The foregoing discussion
is general information rather than specific legal advice. Because it is
necessary to apply legal principles to specific facts, always consult your legal
advisor before using this discussion as a basis for a specific action.