The IRS released the 2013 cost-of-living adjustments for retirement plan and health benefits, and many of the adjustments have increased.
IRS Releases 2013 Retirement and Health Benefit Cost-of-Living Adjustments
The IRS recently released the 2013 cost-of-living adjustments for retirement plan and health benefits.
“As expected, many of the adjustments have increased for 2013,” says Kelly Davis, an employee benefit plan manager with CliftonLarsonAllen. “Due to these changes, employers should make sure payroll and plan administrative systems are updated accordingly.”
The table below highlights the limits for the 2013 plan year in comparison to 2012.
| Plan limits | 2013 | 2012 |
| Annual compensation limit | $255,000 | $250,000 |
| Individual elective deferral limit (401(k), 403(b), 457(b)) | $17,500 | $17,000 |
| Age 50+ catch-up elective deferral limit | $5,500 | $5,500 |
| Defined contribution plan annual additions limit | $51,000 | $50,000 |
| Highly Compensated Employee (HCE) limit | $115,000 | $115,000 |
| Key employee/officer compensation | $165,000 | $165,000 |
| Defined benefit plan annuity limit | $205,000 | $200,000 |
| Simplified Employee Pension plan (SEP) eligibility compensation limit |
$550 | $550 |
| Savings Incentive Match Plan for Employees of Small Employers (SIMPLE) elective deferral limit |
$12,000 | $11,500 |
| SIMPLE age 50+ catch-up elective deferral limit | $2,500 | $2,500 |
| Social security taxable wage base | $113,000 | $110,000 |
| IRA annual contribution limit | $5,500 | $5,000 |
| Health Savings Accounts (HSAs) maximum limits (self/family) | $3,250/$6,450 | $3,100/$6,250 |
| HSA age 55+ catch-up limit | $1,000 | $1,000 |
| High Deductible Health Plans (HDHPs) annual deductible limit (self/family) |
$1,250/$2,500 | $1,200/$2,400 |
| HDHPs annual out-of-pocket maximum limits (self/family) | $6,250/$12,500 | $6,050/$12,100 |
How we can help
Our employee benefit professionals understand how these limits affect your benefit plans, and can provide assistance to plan sponsors in complying with the IRS rules.
Kelly Davis, Employee Benefit Plan Manager
kelly.davis@cliftonlarsonallen.com or 480-615-2383