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CCH can assist you with stories, including interviews with CCH subject experts. Also, the 2013
CCH Whole Ball of Tax
is available in print. Please contact:
 
Leslie Bonacum
(847) 267-7153
mediahelp@cch.com
 
Eric Scott
(847) 267-2179
eric.scott@wolterskluwer.com
 
Brenda Au
(847) 267-2046
brenda.au@wolterskluwer.com

Visit the CCH Whole Ball of Tax site often as new releases and other updates will be posted
throughout the tax season.

CCH provides special CCH Tax Briefings on key topics at CCHGroup.com/Legislation.

 
2013 CCH Whole Ball of Tax
Release (27) | Back to WBOT

2013 CCH Whole Ball of Tax

Contact:
Leslie Bonacum
, 847-267-7153, mediahelp@cch.com
Eric Scott , 847-267-2179, eric.scott@wolterskluwer.com
Brenda Au , 847-267-2046, brenda.au@wolterskluwer.com

Retirement By the Numbers: Employer Plans, IRAs and the Saver's Credit

Final Tax Bill Now Due for Some 2010 Roth IRA Conversions; Increased Saving Opportunities Across Retirement Plans for 2013

Taxpayers who converted a traditional IRA to a Roth IRA in 2010, will need to report the final taxes owed on their 2012 income tax returns if they chose to split the tax bill between 2011 and 2012 rather than paying the full amount in 2010. The option to pay in the future and over two years was only available for conversions made in 2010.

Additionally, under the American Taxpayer Relief Act of 2012 (ATRA), rules for rolling over funds from a 401(k) or similar plan to an employer-plan Roth account has been relaxed for 2013 and beyond. (For additional information on this, see Release 16.)

Also looking ahead, both IRA contribution levels and contribution limits to employer-sponsored programs are subject to cost of living adjustments (COLAs), which increased for 2013. As a result, the contribution levels for IRAs, 401(k)s and employer-sponsored programs also increased from 2012 to 2013.

Additionally, the allowable adjusted gross income (AGI) parameters for IRAs increased for 2013. Income thresholds for 2013 also increased under the Retirement Savings Contributions Credit, more commonly known as the Saver’s Credit, which is a nonrefundable tax credit that allows lower- and middle-income retirement plan participants to use elective contributions to reduce their federal income tax on a dollar-for-dollar basis.

Employer-sponsored Programs

Retirement Vehicle

Maximum 2013
Employee Contribution*

Catch-up Contributions

401(k), 457 and 403(b) plans

$17,500 – pre-tax dollars
(an increase of $500 from 2012)

$5,500
(same for 2012)

Roth 401(k), 403(b), and 457 plans

$17,500 – after-tax dollars
(an increase of $500 from 2012)

$5,500
(same for 2012)

SIMPLE plans

$12,000 – pre-tax dollars
(an increase of $500 from 2012)

$2,500
(same for 2012)

SARSEP**
(Salary Reduction SEP)

$17,500 – pre-tax dollars
(an increase of $500 from 2012)

$5,500
(same for 2012)

 

IRAs***

Retirement
Vehicle

2013 Maximum Contribution Limits*

Catch-up Contributions

Adjusted Gross
Income (AGI) Restrictions

Traditional Deductible IRA

$5,500
(an increase of $500 from 2012)

$1,000
(same for 2012)

For active participants in employer provided plan:
Single filers: under $59,000 phasing out completely at $69,000 ($58,000 phasing out completely at $68,000 for 2012)
Married, filing jointly: under $95,000 phasing out completely at $115,000 (under $92,000 phasing out completely at $112,000 for 2012)

Traditional Nondeductible IRA

$5,500
(an increase of $500 from  2012)

$1,000
(same for 2012)

N/A

Roth IRA Nondeductible

$5,500
(an increase of $500 from  2012)

$1,000
(same for 2012)

Single filers: under $112,000 phasing out completely at $127,000 (under $110,000 phasing out completely at $125,000 for 2012)
Married, filing jointly: under $178,000 phasing out completely at $188,000 (under $173,000 phasing out completely at $183,000 for 2012)

* Subject to COLAs.
** SARSEPs must have been established prior to January 1, 1997. The maximum contribution and catch-up amounts are the same as for 401(k), 457 and 403(b) plans.
*** Individuals have until April 15, 2013, to make contributions to their IRAs for 2012.

Retirement Savings Contributions Credit****

Retirement
Vehicle

2013 Maximum Credit

Adjusted Gross
Income (AGI) Restrictions

IRAs, Roth IRAs, SIMPLE Plans, 401(k)s and other qualified retirement plans

$1,000 for single filers
$2,000 for joint filers

Single filers: $29,500 or less ($28,750 for 2012)
Head of household filers: $44,250 or less ($42,125 for 2012)
Married, filing jointly: $59,000 or less ($57,500 for 2012)

**** Depending on AGI, the Retirement Savings Contribution Credit, known as the Saver’s Credit, provides a credit ranging from 10% to 50% with lower income taxpayers being eligible for a higher credit. For example, a married taxpayer filing jointly with an AGI of $34,500 or less making a $2,000 retirement plan contribution in 2013 could be eligible for a 50% credit, or $1,000. By contrast, if that same taxpayer had an AGI between $34,501 and $37,500, she would be eligible for a 20% credit, or $400; an AGI between $37,501 and $57,500 would make that same taxpayer eligible for a 10% credit, or $200.

SOURCE: Wolters Kluwer, CCH: 2013

Permission for use granted.

nb-13-24

 

 

       


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