2013 Qualified Plan Cost of Living Increases, 2013 Social Security Taxable Wage Base

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October 18, 2012

The Internal Revenue Service has announced the cost-of-living adjustments for the various qualified retirement plan limits. Almost all of the limits shown below are changed from last year.

Qualified Plan Limit Cost-of-Living Adjustments
401(k) and 403(b) elective deferral limit 2012-$17,000

2013-$17,500

$200,000 compensation limit 2012-$250,000

2013-$255,000

$160,000 defined benefit limit 2012-$200,000

2013-$205,000

$40,000 defined contribution limit 2012-$50,000

2013-$51,000

$80,000 definition of highly compensated employee 2012-$115,000

2013-$115,000

SIMPLE IRA deferral limit 2012-$11,500

2013-$12,000

Code Section 457 deferred compensation plan deferral limit 2012-$17,000

2013-$17,500

Code Section 414(v) catch-up contribution limit for employee deferrals 2012-$5,500

2013-$5,500

All of the above are plan year limits (i.e., for the plan year which begins in 2013), with the exception of the Code Section 401(k) and Code Section 403(b) elective deferral limit, which is a calendar year limitation.

In addition, the Department of Health and Human Services has set the maximum taxable wages for the OASDI portion of the social security tax at $113,700 for 2013.

If you have questions regarding the above, please contact Mary Ellen Schill, the author of this article, or any of the attorneys in the Employment & Benefits Practice Group, or the Business Transactions Practice Group of Ruder Ware.

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