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Give Yourself a Raise This Year

401(k), IRA Contribution Limits Raised for 2013

If you currently participate in your employer's 401(k) plan or contribute to an IRA, now is the time to up your contributions. The IRS has increased the annual limits for each of these accounts, allowing workers to stash away more money for retirement.

The 401(k) contribution limit for individuals increased to $17,500 for 2013, up $500 from 2012. The catch-up contribution for people 50 years of age and older (including those who turn 50 in the calendar year) remained at $5,500, for a personal contribution limit of $23,000. If your employer provides a matching contribution (Lucky you! Free money!), that amount is not considered a part of your personal contribution limit. The total contribution limit for 2013, which includes your personal contributions, catch-up contributions and any employer matching contributions, is $51,000, up $1,000 from 2013. Keep in mind that these limits apply to individuals. If you are married, these limits apply to each of you individually.

For the first time since 2008, the IRS has raised the annual contribution limit on IRAs, both traditional and Roth, to $5,500 ($6,500 for those 50 years of age and older). Although Roth IRAs have income limitations, the IRS expanded how many people are eligible to contribute. For married couples, the upper income limit will rise to $188,000 from $183,000. For singles, the limit will increase to $127,000 from $125,000. (All amounts are adjusted gross income.)

 

About First Community Bank and Trust
First Community Bank and Trust is a privately owned bank. Established in 1916 First Community Bank and Trust has been serving Beecher, IL, Peotone, IL and the surrounding communities for over 95 years. Our commitment to providing the best banking products and services is matched only by our outstanding customer service. We offer traditional community banking services, including mortgage, consumer, and commercial lending, as well as state of the art electronic banking services.

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Press Contact:
Steven D. Koehn, VP
First Community Bank and Trust
(708) 946-2246