Finance expert Mike Periu on the new Retirement Account Contribution amounts set by the IRS for retirement accounts like IRAs and 401(k) plans.
December 26, 2012 The Internal Revenue Service announced the annual cost of living adjustments for retirement plan contributions for 2013. Every year the IRS increases the amount you can contribute to retirement accounts to compensate for the ever-rising cost of goods and services to ensure that you are saving enough for retirement:
401(k) plans
The contribution limit increases to $500 to $17,500. People over 50 can make an additional $5,500 in catch-up contributions. The annual limit for combined employer and employee contributions is $51,000
Traditional IRAs
The maximum annual contribution increases to $5,500 with an additional $1,000 permitted for people over 50.
Roth IRAs
These have the same contribution limits as a traditional IRA except for higher income earners. Single people earning over $112,000 and married people earning over $188,000 can contribute less or nothing to a Roth IRA depending on their actual income level.
About Mike Periu
Mike is a seasoned executive with experience in small business finance and management. He is the founder of Proximo, LLC a leading provider of corporate, consumer and small business education and training services with an emphasis on finance and technology.
Mike Periu is also a leading national voice for individual empowerment through financial education and entrepreneurship. He has been interviewed over 500 times in national and international media, including NBC, Univision, CNN en español, Telemundo, HITN, TVE, RTE, SBS, MegaTV and others.
Mike writes regularly for American Express OpenForum, Yahoo! Finanzas and is a Huffington Post contributor.
Mike has degrees in Finance and International Business from Georgetown University. He is on the Board of Directors of the Council for Economic Education and was a Fellow at the Kauffman Foundation’s Labs for Enterprise Creation.
