2013 Retirement and Social Security Limits

The IRS recently released the limits to be used for retirement contributions and the amount of wages subject to Social Security taxes in 2013.

  • The maximum amount of wages subject to Social Security tax is $113,700, up from $110,100 in 2012.
  • The maximum 401(k) deferral by an employee will be $17,500, up from $17,000 this year.  Those age 50 or older can contribute up to $23,000 next year.
  • Up to $5,500 can be contributed to both traditional and Roth IRA accounts next year, with those age 50 or older able to contribute up to $6,500.
  • Those using SIMPLE IRA accounts will be allowed to defer up to $12,000, with those age 50 or older able to defer up to $14,500.

This is the first in a two part update on the 2013 limits.  We’ll bring the rest to you next week.