IRAs

2013 Retirement Account Contribution Limits

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?

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.

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.

[EMBED TYPE=POLL ID=23341]

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.

Most Popular

2 Credit Card Gotchas to Watch Out For
credit cards

2 Credit Card Gotchas to Watch Out For

After an infuriating wake-up call with her own credit card company, one financial services consultant wants consumers to know something: It’s smart to…
October 20, 2020
Election 2020: Joe Biden's Tax Plans
taxes

Election 2020: Joe Biden's Tax Plans

With the economy in trouble, tax policy takes on added importance in the 2020 presidential election. So, let's take a look at what Joe Biden has said …
October 15, 2020
When Retirees Question More Retirement Income
annuities

When Retirees Question More Retirement Income

What would you say if I told you that you could safely get significantly more retirement income from your retirement savings? That’s what I call an In…
October 20, 2020

Recommended

13 States That Tax Social Security Benefits
social security

13 States That Tax Social Security Benefits

You may have dreamed of a tax-free retirement, but if you live in these 13 states, your Social Security benefits are subject to a state tax. That's on…
October 21, 2020
The Best Fidelity Funds for 401(k) Retirement Savers
Investing for Income

The Best Fidelity Funds for 401(k) Retirement Savers

Fidelity funds are renowned for their managers' stock-picking prowess. We rate Fidelity's best actively managed funds that are popular in 401(k) plans…
October 21, 2020
The Best Vanguard Funds for 401(k) Retirement Savers
mutual funds

The Best Vanguard Funds for 401(k) Retirement Savers

Vanguard funds account for a third of the 100 most popular 401(k) retirement products. We rank Vanguard's best actively managed funds, including its t…
October 21, 2020
Election 2020: 3 Things Retirees Should Pay Attention To
retirement planning

Election 2020: 3 Things Retirees Should Pay Attention To

When it comes to your money in retirement, here are three main issues that seniors should pay attention to before they cast their votes in the 2020 pr…
October 21, 2020