- FedSmith.com Blogs -

Tags: , ,

IRS Announces 2013 Pension Plan Limitations

by Ian Smith |

The Internal Revenue Service recently announced 2013 contribution limits for federal employees who participate in the Thrift Savings Plan.

The annual contribution limit in 2013 for the TSP will be $17,500, up from $17,000 in 2012. The catch up contribution limit for the TSP for employees 50 and older will remain unchanged at $5,500.

Other highlights of the 2013 IRS pension plans limitations announcement include:

  • The deduction for taxpayers making contributions to a traditional IRA is phased out for singles and heads of household who are covered by a workplace retirement plan and have modified adjusted gross incomes (AGI) between $59,000 and $69,000, up from $58,000 and $68,000 in 2012. For married couples filing jointly, in which the spouse who makes the IRA contribution is covered by a workplace retirement plan, the income phase-out range is $95,000 to $115,000, up from $92,000 to $112,000. For an IRA contributor who is not covered by a workplace retirement plan and is married to someone who is covered, the deduction is phased out if the couple’s income is between $178,000 and $188,000, up from $173,000 and $183,000.
  • The AGI phase-out range for taxpayers making contributions to a Roth IRA is $178,000 to $188,000 for married couples filing jointly, up from $173,000 to $183,000 in 2012. For singles and heads of household, the income phase-out range is $112,000 to $127,000, up from $110,000 to $125,000. For a married individual filing a separate return who is covered by a retirement plan at work, the phase-out range remains $0 to $10,000.
  • The AGI limit for the saver’s credit (also known as the retirement savings contribution credit) for low- and moderate-income workers is $59,000 for married couples filing jointly, up from $57,500 in 2012; $44,250 for heads of household, up from $43,125; and $29,500 for married individuals filing separately and for singles, up from $28,750.

Federal employees should always consult a tax advisor for specific questions about the tax laws as they apply to their personal situations or retirement accounts.

© 2014 FedSmith Inc. All rights reserved. This copyrighted article may not be reproduced without express written consent of FedSmith Inc.

Related Articles

About the Author

Photo of Ian Smith

Ian Smith

Ian Smith is one of the founders of FedSmith.com. He writes about current topics that impact federal employees.

Bio | Contact

Comments

If you are an Internet Explorer user, please note that Disqus may not render properly in compatability view mode.

Free Email Updates

Unsubscribe or Update Email

Daily TSP Rates

April 17, 2014

Fund Last Change YTD
L Income 16.9750 +0.0069 +0.94%
L 2020 22.0406 +0.0303 +1.12%
L 2030 23.7376 +0.0425 +1.19%
L 2040 25.1366 +0.0530 +1.22%
L 2050 14.2365 +0.0355 +1.23%
G Fund 14.3859 +0.0010 +0.69%
F Fund 16.1278 -0.0505 +2.45%
C Fund 24.2371 +0.0345 +1.52%
S Fund 33.7924 +0.1332 +0.36%
I Fund 25.7933 +0.1257 +0.90%
More TSP Rates | Track Your Investments