While much is uncertain about what taxes will look like for 2013, at least we have a small measure of certainty with a few items. On Thursday, Oct. 18th, 2012, the IRS released IR-2012-77 and IR-2012-78, which contained a number of increased limits and benefits. Here are the main highlights:
- Annual exclusion for gifts increases to $14,000 for 2013, up from $13,000 for 2012.
- The 401k elective deferral limit for employees increases from $17,000 for 2012 to $17,500 for 2013. This also applies to 403(b), most 457 plans, and the federal Thift Savings Plan. The corresponding catch-up contribution for employees age 50 and over remains unchanged at $5,500.
- If your 401k plan has profit sharing, the maximum employer contribution increases from $33,000 in 2012 to $33,500 for 2013. This increases the maximum defined contribution limit to $51,000.
- The SIMPLE IRA contribution limit increases to $12,000 in 2013, up from $11,500 in 2012. Like with the 401k, the catch-up contribution limit for SIMPLE plans remains unchanged at $2,500.