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Higher contribution limits on 401(k) & IRAs

Contribution limits for 401(k) plans have been increased to $17,500 and IRAs (both Roth & traditional) to $5,500 due to inflation. This is the first increase since 2008. Persons 50 and older can contribute an additional $1,000 to an IRA. If your earned income is between $178,001 and $188,000, your 2013 Roth IRA contribution limit phases out. Persons earning $188k or more cannot contribute to a Roth IRA but they can contribute to a non-deductible traditional IRA and later pay the taxes to convert to a Roth.
For those over 50 years old contributing to a 401(k), the additional “catch-up” amount will remain $5,500, resulting in a maximum contribution of $22,500.
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Higher contribution limits on 401(k) & IRAs
Higher contribution limits on 401(k) & IRAs
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