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2013 Retirement Account Contribution Limits

Kimberly Lankford

You'll be able to stash more in a 401(k), IRA and Roth IRA next year.



How much can I contribute to my IRA and 401(k) next year? And will the income limit for Roth contributions rise?

SEE ALSO: Are You Saving Enough for Retirement?

The IRS just announced the new contribution limits for 2013, which increase slightly from 2012. The maximum you can contribute to a 401(k), 403(b), most 457s or the federal government’s Thrift Savings Plan rises from $17,000 to $17,500 in 2013. The catch-up contribution limit for people age 50 or older remains at $5,500.

For more information about boosting your 401(k) contributions, see How to Increase 401(k) Contributions.

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You can also kick in more to your IRA in 2013. For both traditional IRAs and Roths, the maximum you can contribute rises from $5,000 to $5,500 (the catch-up contribution is still $1,000 for people age 50 or older, bringing their total to $6,500 in 2013). The income limit for contributing to a Roth also rises slightly -- from $183,000 to $188,000 for married couples filing jointly, and from $125,000 to $127,000 for singles and people filing as head of household. The amount you can contribute starts to phase out if your adjusted gross income is $178,000 or more for joint filers, and $112,000 for singles and heads of household.

There's no income limit for contributing to a traditional IRA, but there are income limits for deducting contributions. Those limits have also increased slightly. For details, see 2013 Pension Plan Limitations.

The income cut-off for the saver’s credit (officially called the Retirement Savings Contribution Credit) will also rise a bit. This credit is designed to encourage lower-income workers to save for retirement in a retirement savings plan, such as an IRA or a 401(k). To qualify for the credit, your adjusted gross income must be below $59,000 if married filing jointly (up from $57,500 in 2012), $44,250 for heads of household (up from $43,125) or $29,500 for singles or married couples filing separately (up from $28,750). The lower your income, the bigger the credit, up to $1,000. For more information about the saver’s credit, see A Tax Credit for Retirement Savers.

For more information about saving for retirement, see our Jump-Start Your Retirement Plan special report.



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