Thursday, October 25, 2012

Inflation Finally Adjusts Pension Limits Again

I'll start out by apologizing for not posting for a while. I've been on the road in multiple time zones and sometimes (well, actually always), blogging isn't priority #1. But, it's time to get back to it.

As most readers will know many of the limitations that affect qualified retirement plans are subject to indexation and the timing of the announcements is mid-October. So, without further ado, here you go with the 2013 limits:
  • The limit for deferrals to 401(k), 403(b), most 457 plans and (believe it or not), the Government Thrift Plan increases from $17,000 to $17,500
  • The limit on catch-up contributions for people who turn age 50 (or older during the year) stays at $5,500
  • The defined benefit 415 limit has increased from $200,000 (annual benefit as a single life annuity at age 65) to $205,000
  • The 415 limit for defined contribution plans will be $51,000 up from $50,000
  • The limit on compensation that may be considered under the plan increases from $250,000 to $255,000
  • The threshold for determining Highly Compensated employees remains at $115,000
  • The pay cap for governmental plans rises from $375,000 to $380,000
I'll be back to posting more regularly again. Thanks for being patient.

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