Some Contributions Limits for 2013

Often the contribution limits for tax deferred accounts and gifting are increased to keep up with inflation. The limits have been increased for 2013. Up to $17,500 can be contributed to a 401(k) or 403(b) account and those participants 50 years and older are able to add an additional $5,500 in catch up contributions. The maximum contributions to IRAs and Roths for 2013 is $5,500 with an additional $1,000 in catch up contributions for those 50 years and older. There are phase out limits and other restrictions for IRA and Roth contributions depending on adjusted gross income and whether you have access to a plan through work. Please seek the advice of your tax accountant for individual contribution limits.

The annual gift tax exclusion for 2013 will also increase to $14,000 per individual or $28,000 for a couple. There is a lifetime limit to these tax exclusion gifts which may change significantly in 2013 from this year so again, please consult your tax advisor for your personal tax situation.