For the second year in a row, 401(k) limits have risen. The contribution limit for 2013 is $17,500 (up from $17,000 in 2012). The maximum applies to your salary deferrals to traditional 401(k) plans or ROTH 401(k) plans (or, if you have both a traditional and a ROTH, to the combination of the two). The same $17,500 limit applies to 403(b) and 457(b) plans as well.
We understand that not everyone can contribute the maximum to their 401(k). However, it is a great way to secure your financial future, especially if your employer has a matching program. We encourage you to carefully review your retirement planning options and contact us if you have any questions regarding your 401(k).
L. Daniel Osborne, CPA