On October 18, 2012, the IRS announced the new limits for 2013 and for a second year in a row some of the limits are increasing.

The elective deferral (employee contribution) limit increases from $17,000 to $17,500 for 401(k), 403(b) and most 457 plans, however the “catch-up” contribution limit for participants over age 50 in those plans remains unchanged at $5,500.

The §415(c)(1)(A) limit on total contributions to a defined contribution plan was raised from $50,000 to $51,000.

The §415(b)(1)(A) limitation on the annual benefit under a defined benefit pension plan increased from $200,000 to $205,000.

The dollar threshold for determining “highly compensated employee” status remains at $115,000, and the annual compensation limit under §401(a)(17) that governs the amount of compensation that may be considered in a defined contribution plan increased from $250,000 to $255,000.

Additionally, the taxable wage base for social security increased from $110,100 to $113,700.  For a full listing of changes, please see COLA Table.