COLA Increases for Dollar Limitations on Benefits and Contributions
The Internal Revenue Code provides for dollar limitations on benefits and contributions under qualified retirement plans. Code §415 requires the limits to be adjusted annually for cost-of-living increases. The IRS announced on October 18, 2012 cost-of-living adjustments applicable to dollar limitations for pension plans and other items for tax year 2013.
Please see our COLA Increases Table for prior years' dollar limitations and Internal Revenue Code references.
| 2013 |
2012 |
2011 |
|
|---|---|---|---|
|
IRAs |
|||
| IRA Contribution Limit | 5,500 | $5,000 | $5,000 |
| IRA Catch-Up Contributions | 1,000 | 1,000 | 1,000 |
|
IRA AGI Deduction Phase-out Starting at |
|||
| Joint Return | 95,000 | 92,000 | 90,000 |
| Single or Head of Household | 59,000 | 58,000 | 56,000 |
|
SEP |
|||
| SEP Minimum Compensation | 550 | 550 | 550 |
| SEP Maximum Compensation | 255,000 | 250,000 | 245,000 |
|
SIMPLE Plans |
|||
| SIMPLE Maximum Contributions | 12,000 | 11,500 | 11,500 |
| Catch-up Contributions | 2,500 | 2,500 | 2,500 |
|
401(k), 403(b), Profit-Sharing Plans, etc. |
|||
| Annual Compensation | 255,000 | 250,000 | 245,000 |
| Elective Deferrals | 17,500 | 17,000 | 16,500 |
| Catch-up Contributions | 5,500 | 5,500 | 5,500 |
| Defined Contribution Limits | 51,000 | 50,000 | 49,000 |
| ESOP Limits |
1,035,000 205,000 |
1,015,000 200,000 |
985,000 195,000 |
|
Other |
|||
| HCE Threshold | 115,000 | 115,000 | 110,000 |
| Defined Benefit Limits | 205,000 | 200,000 | 195,000 |
| Key Employee | 165,000 | 165,000 | 160,000 |
| 457 Elective Deferrals | 17,500 | 17,000 | 16,500 |
| Control Employee (board member or officer) | 100,000 | 100,000 | 95,000 |
| Control Employee (compensation-based) | 205,000 | 205,000 | 195,000 |
| Taxable Wage Base | 113,700 | 110,100 | 106,800 |
Page Last Reviewed or Updated: 24-Oct-2012
