Ceiling Raised for Retirement Savings Plan Contributions

Daily Stat | October 26, 2012 | Topics: Retirement 

$500: Increase in limit on annual retirement plan contributions for 2013

The Internal Revenue Service (IRS) recently announced that it is raising the limit for annual retirement plan contributions by $500 in 2013. Participants in 401(k) and other retirement savings plans will be able to allocate 17,500 in tax-deferred dollars starting next year. The limit was raised by $500 last year as well.

In this new world of retirement investing, where Social Security and company pensions can no longer ensure comfort throughout the golden years, tax-advantaged retirement savings plans like 401(k)s are becoming increasingly important. As National Save for Retirement Week comes to a close, don't let it be the end of your retirement planning this year. If you are able, take advantage of the increased contribution limit for optimal retirement savings.

Source: BlackRock; Ignites, "IRS Hiking 401(k) Contribution Maximum," October 19, 2012

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