IRS Announces 2013 Pension Plan Limitations

By on October 22, 2012 in News, Retirement

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.

© 2016 Ian Smith. All rights reserved. This article may not be reproduced without express written consent from Ian Smith.

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About the Author

Ian Smith is one of the co-founders of FedSmith.com. He enjoys writing about current topics that affect the federal workforce. Ian also has a background in web development and does the technical work for the FedSmith.com web site and its sibling sites.

2 Replies

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  1. JR says:

    Article needs to be revised to include the fact that the maximum IRA contribution is now $5,500 ($6,500, over 50) as noted by previous post. This is a significant omission on the part of the author

  2. USPS Letter Carrier says:

    The body of the article doesn’t mention it but the IRS link does state that the 2013 IRA rises $500 from $5,000 to $5,000:

    “The limit on annual contributions to an Individual Retirement Arrangement (IRA) rises to $5,500, up from $5,000 in prior years.”

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