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William Perez

IRA Contribution Limits for 2013

By October 23, 2012

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Individuals can save up to $5,500 through an individual retirement account (IRA) for 2013, according to new limits announced by the IRS (IR-2012-77). This new $5,500 limit is the first change in IRA contribution limits since 2008. For the years 2008 through 2012, IRA contributions were capped at $5,000.

The $5,500 IRA contribution limit for 2013 applies to traditional IRAs and Roth IRAs collectively. Taxpayers can choose to contribute either to a traditional IRA or to a Roth IRA or to both in any combination, as long as total contributions don't exceed the annual limit.

The IRS also updated the income limits for being eligible to deduct contributions to a traditional IRA and for being eligible to contribute to a Roth IRA.

Comments
October 23, 2012 at 2:49 pm
(1) Jack says:

Is there an over 55 yr catch up of $1000 still on the IRA $5500 new limit?

October 30, 2012 at 12:03 am
(2) William Perez says:

Jack, an excellent question. I dug into this a little further and found out that the provision for catch-up contributions expires this year (tax year 2012). Congress will need to pass new legislation in order for catch-up contributions for 2013.

October 24, 2012 at 7:36 am
(3) tax preparation says:

it’s not in public favor..

November 3, 2012 at 8:59 am
(4) bill says:
November 5, 2012 at 3:09 pm
(5) William Perez says:

This is good to know! Thank you, Bill, for pointing us to that IRS web page with the catch-up contributions.

December 2, 2012 at 11:24 pm
(6) Scott says:

Is it possible to open a Roth IRA in Dec. 2012 with the maximum ($5,000) and then add another $5,500 in January 2013?

December 3, 2012 at 10:38 am
(7) IRA Guy says:

Scott, yes! Just make sure that you designate the $5500 that you contribute in January as a contribution for 2013, not 2012. The IRS allows contributions for the tax year up through tax day of the following year. Hope that helps.

January 11, 2013 at 12:26 pm
(8) RC says:

Jan. 11, 2013 – Did the law allowing “catch-up contributions”, for those over 55 years of age, get extended, or did it in fact expire at the end of 2012? There seems to be conflict among internet financial sources as to this. Thanks.

February 15, 2013 at 11:50 am
(9) Jerry says:

I have a 401 k match at work – can I put 5k in a Traditional IRA for 2012?
Thanks

February 28, 2013 at 12:07 pm
(10) Travis says:

Jerry, yes you can… your limits in an IRA have nothing to do with a qualified plan contribution.

March 5, 2013 at 11:41 am
(11) pang ho says:

HI, I am self emplyed and have a solo 401k. Can I still open an IRA account?

Thanks

Pang

March 16, 2013 at 10:54 pm
(12) William Edwards says:

Are “Catch-Up” contributions of $1,000 also limited to the total amount of taxable compensation for 2013? For example, I work part time and earn $4,000 in 2013; I put $4,000 in my Roth IRA account for the 2013 tax year. May I put an additional $1,000 in my Roth IRA for the 2013 year?

March 21, 2013 at 8:57 pm
(13) William Perez says:

William, the amount that can be contributed to an IRA — of any type, whether traditional or Roth — is limited by your earned income, which for IRA purposes consists of wages, net self-employment income, and alimony. This topic is discussed in more detail in the compensation section of Publication 590.

April 22, 2013 at 5:46 pm
(14) simple inquiry says:

As a single person with an income of 100K + that is contributing to a company sponsored 401k, I am unable to deduct any of my IRA contributions. Given this is the case, does it still make sense to contribute?

June 13, 2013 at 8:52 am
(15) Jim says:

I’m evaluating two offers of employment and am comparing benefits of two companies. What I find odd is one of the companies will allow me to contribute up to 5% of eligible earnings with a company match of 1% up to $1,000). I also turn 50 this year and want to contribute the maximum amount to my 401(k) and take advantage of the catch-up rate for people over 50.

Questions:

If my proposed base salary is $100,000 (which under company policy would limit my 401(k) contribution to $5,000) would I also be able to contribute to a Roth IRA and/or Traditional IRA?

Is there any reason why a company would limit the amount an employee can contribute to a 401(k)? I’m used to maxing out my 401(k) contributions and a 5% contribution limit means I would miss out saving $18,000/year (including the $5,500 catch-up contribution).

June 26, 2013 at 6:13 pm
(16) hunter says:

Can a married couple over 50 each contribute up to $6,500 to their individual IRA/Roth accounts or is their joint total limited to $6,500?

June 27, 2013 at 12:16 am
(17) William Perez says:

The IRA limits are per individual. So married couples can each contribute up to the maximum in their Individual Retirement Accounts.

July 17, 2013 at 9:23 pm
(18) H says:

Hi,
If my friend quit her job in the mid of 2013. Could she contribute to her 401(k) account by deposit a personal check into her 401K account or increase her husband’s 401K limit to reach $17500 x2 (for couple) in 2013?
Thanks,

October 17, 2013 at 12:55 pm
(19) Phil says:

The past couple of years I’ve been able to “roll over” my taxable Traditional IRA contribution into a Roth IRA. Because of income limits I wasn’t able to make a deposit directly into a Roth IRA, but a new law allowed me to roll over Traditional IRA funds into a Roth without the income limits coming into play and without a penalty on the withdrawn funds (since they were post-tax contributions). Is that still the case for 2013, or was that law one that had a “sunset” provision (like so many other such laws seem to have)?

November 5, 2013 at 1:05 pm
(20) Asker says:

My husband change job in Mid 2013. New company does not provide retirement plan but old one did. Since my company provide retirement plan & our household income is lower than phrase out $178K, can he still contribute $5500 to take max. tax deduction.

December 30, 2013 at 9:27 pm
(21) thunter says:

For the new limit and increase from $5,000 to $5,500, is there any salary limit to this, like, only those filing joint with less than $150 thousand or something like that? Any income limits or is the limit for everyone?

December 30, 2013 at 11:28 pm
(22) William Perez says:

thunter, the ability to contribute to an IRA is limited only by a person’s earned income for the year. For IRA purposes, earned income consists of wages, net self-employment income, and alimony. This topic is discussed in more detail in Publication 590. So, basically, if you have earned income of at least $5,500, then you can contribute the max to an IRA.

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