Participants in 403(b) plans will be able to save up to $17,500 for the year 2013, according to the Internal Revenue Service which released updated pension plan limitations for the year 2013 (IR-2012-77).
The 403(b) contribution limits for 2013 will be as follows:
- up to $17,500 in elective salary deferrals,
- plus up to an additional $5,500 in "catch-up contributions" if the 403(b) participant is age 50 or older,
- and total contributions (employee's salary deferrals plus employer's matching contributions) cannot exceed $51,000.