• Facebook
  • Twitter
  • Linkedin
BACK TAXES HELP
  • Tax Problems
    ▼
    • Tax Problems Overview
    • Audit
      ▼
      • Audits Overview
      • Audited and Can’t Pay
      • Avoid Tax Audit
      • Statute of Limitations
    • Business
    • IRS Letters
    • Tax Levy
      ▼
      • Tax Levy Overview
      • Bank Levy
      • IRS Asset Seizure
      • Protect Assets
      • Release Tax Levy
      • Social Security Garnishment
      • Tax Levy Appeals Process
      • Wage Garnishments
    • Tax Lien
      ▼
      • Tax Lien Overview
      • Release or Withdrawal of Tax Lien
      • Appeal Tax Lien
      • IRS Form 14135: Discharge Tax Lien
      • IRS Form 12277: Request Lien Withdrawal
    • Tax on Settlement of Consumer Liabilities
    • Tax Penalties
      ▼
      • Tax Penalties Overview
      • Failure to File Penalty
      • Failure to Pay Penalty
      • IRS Interest Underpayment
      • Late Filing Penalty
      • Late Payment Penalty
      • Tax Evasion
      • Tax Fraud
      • Trust Fund Recovery Penalty
    • Unfiled Taxes
      ▼
      • File Back Taxes
      • Unfiled Taxes Return
      • Unfiled Tax Return Consequences
    • Unpaid Taxes
      ▼
      • Unpaid Taxes Overview
      • IRS Collections: How The Process Works & How to Stop It
      • Find Out Tax Amount Owed
      • IRS Statute of Limitations
  • Tax Solutions
    ▼
    • Tax Solutions
    • Bankruptcy
    • IRS Tax Appeal
      ▼
      • IRS Tax Appeal Overview
      • IRS Collection Due Process (CDP)
      • Collection Appeals Program (CAP)
    • Payment Plans
      ▼
      • Payment Plans Overview
      • Installment Agreements
      • Short-Term Extension
    • Tax Settlement
      ▼
      • Tax Settlement Overview
      • Innocent Spouse Tax Relief
      • Offer in Compromise
      • Penalty Abatement
      • Prove Financial Hardship
      • Tax Negotiation
  • State Tax Relief
  • About Us
    ▼
    • About BackTaxesHelp
    • Tax Professionals
      ▼
      • Tax Professionals Overview
      • CPA
      • IRS Enrolled Agent
      • Tax Attorney
      • Tax Resolution Services
      • Taxpayer Advocate Services
      • Low Income Taxpayer Clinic
      • Tax Relief Scams
    • Tax Services
      ▼
      • Our Tax Services
      • Tax Process
    • Testimonials
    • Our Team
    • Get A Quote
  • Resources
    ▼
    • Resources Overview
    • Back Taxes FAQ
    • Forms: IRS and State
    • How To
    • IRS Phone Numbers
    • Power of Attorney
    • Tax Filings
  • Tax Blog
  • Skip to main content
  • Skip to primary sidebar
  • Skip to footer

Back Taxes Help HomepageBack Taxes Help

Get tax help

Call for a Free Consultation800-928-5035
Call for a Free
Consultation
800-928-5035
  • Tax Problems
    • About Tax Problems
    • Audit
    • Business
    • IRS Letters
    • Tax Levy
    • Tax Lien
    • Tax on Settlement of Consumer Liabilities
    • Unfiled Taxes
    • Unpaid Taxes
  • Tax Solutions
    • About Tax Solutions
    • IRS Tax Appeal
    • Repayment Plans
    • Tax Settlement
  • State Tax Relief
  • About Us
    • About BackTaxesHelp
    • Tax Professionals
    • Tax Services
    • Testimonials
    • Our Team
    • Get a FREE Quote
  • Resources
    • Tax Resources
    • Back Taxes FAQ
    • Forms: IRS and State
    • How To
    • IRS Phone Numbers
    • Power of Attorney
    • Tax Filings
  • Tax Blog
Home / Tax Law Changes / IRS Retirement Plan Contribution Limits for 2013

IRS Retirement Plan Contribution Limits for 2013

January 3, 2013 By Rebecca Lake

  • Facebook
  • Twitter
  • Linkedin

alcohol and tobacco

If you’re worried about stashing away enough cash for your golden years, the IRS is making it easier to add to your nest egg. Beginning in 2013, taxpayers will be able to contribute even more to their qualified retirement accounts. Along with the increase in contribution limits, the IRS is also making a few other changes that could impact your retirement planning strategy.

How the New Numbers Add Up

For 2012, taxpayers were able to contribute up to $17,000 annually to an employer-sponsored retirement plan, including a 401(k), 403(b), 457 plan or a Thrift Savings Plan. In 2013, the new contribution limit will increase to $17,500 per year. The catch-up contribution limit, which applies to taxpayers aged 50 or older, remains fixed at $5,500 per year. If you’re supplementing your retirement savings with a traditional or Roth IRA, the IRS is also bumping up your contribution limit. Beginning in 2013, the yearly contribution limit rises from $5,000 to $5,500. The limit on catch-up contributions for taxpayers aged 50 and older will also increase to $6,500.

Deductions on Retirement Plan Contributions

The IRS is also making some adjustments in terms of deductions for contributions to a traditional IRA. Beginning in 2013, the deduction is phased out entirely for taxpayers who file single or head of household, are covered by an employer’s retirement plan and have a modified adjusted gross income (AGI) between $59,000 and $69,000, a slight increase over 2012 limits. For married couples who file jointly, the income phase-out range is $95,000 to $115,000, up from $92,000 to $112,000 in 2012. If you’re married and file jointly, the income phase-out limit ranges from $173,000 to $183,000 if only one of you is covered by an employer’s retirement plan.

Roth IRA Income Limits

Unlike a traditional IRA, you can only make contributions to a Roth IRA if your income is within certain limits. While qualified withdrawals are tax-free, you can’t deduct your contributions. For 2013, the IRS is increasing the income limits for Roth IRA contributions to $188,000 for married couples filing jointly, a $5,000 increase from 2012. Single filers or taxpayers who claim head of household will see the income phase-out limit increase to $127,000 in 2013. If you’re married but file separate turns and you’re already covered by an employer’s plan, the phase-out limit for contributions stays the same at $10,000.

Changes to the Saver’s Credit

The Saver’s Credit, also known as the retirement savings contribution credit, is designed to give low- and middle-income taxpayers a break on their tax bill. Depending on your tax filing status, you could qualify for up to a $2,000 credit just for contributing to your retirement account. In order to be eligible, your income must be below the limits specified by the IRS. In 2013, the adjusted gross income limit needed to qualify increases to $59,000 for married couples filing jointly, $44,250 for heads of household and $29,500 for single filers or married couples who file separate returns.

What It Means For You

The upcoming tax changes for retirement plan contributions are designed to help taxpayers keep up with the cost of inflation. Overall, the changes represent close to a 3% upwards adjustment. For taxpayers at the lower end of the income spectrum, it increases the likelihood of being eligible for the Saver’s Credit. For higher income earners, the new limits may make it easier to claim deductions for traditional IRA contributions or contribute to a Roth IRA for the first time.

Reader Interactions

Comments

  1. Tom says

    August 5, 2013 at 7:34 am

    Roth IRA Income Limits
    “you can’t deduct your contributions”
    If speaking of tax free, I’m pretty sure you can deduct your contributions tax free. It is the EARNINGS that you can’t deduct without penalty.

    Log in to Reply

Leave a Reply Cancel reply

You must be logged in to post a comment.

Primary Sidebar

Tax Problems?





Categories

  • Business Taxes
  • Celebrities
  • Entertainment
  • FAQ
  • Filing Taxes
  • How To
  • Installment Agreements
  • Payment Plans
  • State Taxes
  • Tax Audit
  • Tax Credits & Deductions
  • Tax Filing Extension
  • Tax Help
  • Tax Law Changes
  • Tax Levy
  • Tax Lien
  • Tax News
  • Tax Opinion
  • Tax Settlements
  • Tax Tips

SUCCESS STORIES

  • "I was in a tough situation. I didn’t have much money and I couldn’t pay my tax balance.  I was able to pay off my taxes over time with an agreement. Thanks again!"
    ~ Brian J., Orange, CA

  • "Thank you so much for your diligence in taking care of our situation. You were always available when we needed to ask questions, and you should be proud of your professional handling of our case!"
    ~ Mr. Wilson, Taylor, TX

  • "I had used another company previously, and I had concerns initially but you guys put me in good hands and in no time flat. This is such a weight off of my shoulders."
    ~ Mr. Szramiak, Philadelphia, PA

  • "My back taxes had been haunting me for years & the bank levy happened so quickly; I’m glad I had I requested a free consultation. Everyone is astonished they got all my money back so soon. I am eternally grateful!"
    ~ Mr. Mason, Minneapolis, MN

Resolve Your Tax Problems Today!

GET A FREE TAX ANALYSIS

Footer

53 Halloween Blvd.
Stamford, CT 06902
PH: 203-813-7549
Toll Free: 800-928-5035
admin@backtaxeshelp.com
Call for a Free Consultation
800-928-5035

facebooktwitter
Back Taxes Help
  • Resources
  • Sitemap
  • Privacy Policy
  • Terms of Use
  • Contact
  
Back Taxes Help BBB Business Review
Privacy Seal
Security Seal
ASTPS
  

Copyright © 2025 BackTaxesHelp.com


Disclaimer: We are not affiliated with the IRS, any private tax collector, or any state tax agency. The information provided on this website is for general educational or informational purposes only. Nothing on this website should be interpreted as legal or tax advice for any individual or business tax case. Before taxpayers sign up with a tax relief or tax resolution company, they should request a free consultation in order to understand how tax relief services work and the associated costs. The free consultation comes with no obligation to use any product or services. In many cases, a reputable tax resolution firm can provide taxpayers with relief.  

Scroll Up