Tax day is rapidly approaching, and April 15th also marks the last day that an IRA contribution can be made for the 2012 tax year. If a taxpayer wishes to make both their 2012 and 2013 contributions prior to this date, it may be helpful to briefly review the 2012 IRA limits and the new changes for 2013.
The contribution limit for IRA accounts for 2012 contributions is $5,000 for taxpayers under 50 years of age, and $6,000 for those that are age 50 and older. These amounts increased slightly for 2013 contributions to $5,500 and $6,500, respectively.
Contribution limits for qualified retirement plans such as 401(k) or 403(b) plans also increased slightly for 2013, with those below age 50 allowed to contribute $17,500 and those over age 50 able to contribute $23,000. SIMPLE IRA plan participants are allowed to contribute up to $12,000 and $14,500, respectively.
Please contact your Wealth Manager, Financial Advisor, or tax advisor for further information on the contribution limits and income restrictions for IRA accounts in 2013.