New Retirement Plan Limits for 2013

The 2013 retirement plan contribution limits have been announced. Whether your retirement is around the corner or a long way off, now is the time to start planning and thinking about how you might be able to take advantage of next year's higher retirement plan contribution limits!

2013 Retirement Contribution Plan Limits

$17,500	Employee 401(k) and 403(b) elective deferrals, an increase of $500.
$5,500	Catch-up elective deferrals if age 50 or older—no change.
$51,000	Annual defined contribution plan limit, up $1,000.
$255,000	Annual compensation limit for defined contributions plans, up $5,000.
$115,000	Highly compensated employee threshold.
$12,000	SIMPLE plan deferral, up $500.
$113,700	Social Security tax wage base, up $3,600.

If these terms and concepts are Greek to you, it's time to consult your independent, fee-only financial planner! He or she can help you create a plan that takes full advantage of the retirement contribution options available to you.

About Bruce J. Berno, CFP^®
Bruce J. Berno, CFP^® is the founder of Berno Financial Management, Inc. a fee-only comprehensive personal financial planning and investment advisory firm headquartered in Cincinnati, Ohio. Since 1993, Berno Financial Management has been helping individuals and families achieve financial peace of mind. For more information about Berno Financial Management, visit http://www.bernofinmgt.com.