The IRS's recent announcement of new, higher limits on 401(k) and IRA contributions didn't make a lot of headlines. And no wonder, given that it was competing against both the presidential race and a looming hurricane.
Still, for those of us who are scrambling to save enough money for retirement, it's news we can use. So, in case you missed it, a quick recap:
- For 401(k) contributions, the new annual limit for 2013 is $17,500 for anyone under 50. That's up from $17,000 this past year. The additional catch-up contribution for people 50 and older remains at $5,500. So the combined limit for that latter group is now $23,000.
- For IRAs, the limit has increased to $5,500 for under-50s, up from $5,000 in 2012. The catch-up contribution remains unchanged, at $1,000.
Those are the changes that will probably affect the most people. But many other retirement-plan limits changed as well. They're summarized by the IRS in this handy table.
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