401k Limits – Inflation Adjustment

2013 must be the year of raises…

RP-2012-41 will be published on November 5, 2012, and will contain the full details of the announced changes, but some of the changes are outlined below:

This week the Social Security Administration announced that recipients will receive a 1.7% increase…http://www.ssa.gov/cola/

And the IRS announced an increase in both the 401k contribution limits and gifting limits.  Starting in 2013, you can now add $17,500 to your 401k (plus and extra $5,500 if you are over 50).  This is a $500 increase in the contribution limit.  In 2013 you will also be able to gift up to $14,000 per year to another individual without having to file a special tax return.  You can read about these increases here… http://money.cnn.com/2012/10/18/pf/taxes/401k-contribution-limit/index.html?source=linkedin&goback=.gde_55224_member_176611264