IRS Announces 2013 Changes

The Internal Revenue Service has announced cost‑of‑living adjustments affecting dollar limitations for pension plans and other retirement-related items for Tax Year 2013.  In general, many of the pension plan limitations will change for 2013 because of the increase in the cost-of-living index.  For example, the elective deferral (contribution) limit for employees who participate in 401(k), 403(b), most 457 plans, and the federal government’s Thrift Savings Plan is increased from $17,000 to $17,500.  For tax year 2013, the IRS also announced annual inflation adjustments for more than two dozen tax provisions, including the annual exclusion for gifts which rises to $14,000 for 2013, up from $13,000 for 2012.  For more information on the changes go to www.irs.gov