Retirement Plan Limits

Posted by Tony Walser on Feb 1, 2013 10:32:26 AM

How Much Money Can I Put into My IRA or Employer-Sponsored Retirement Plan?

IRAs and employer-sponsored retirement plans are subject to annual contribution limits set by the federal government. The limits are periodically adjusted to compensate for inflation and increases in the cost of living.

Retirement Plan Limits


For the 2013 tax year, you can contribute up to $5,500 to all IRAs combined (the limit will be adjusted annually for inflation). If you have a traditional IRA as well as a Roth IRA, you can only contribute a total of the annual limit in one year, not the annual limit to each.

If you are age 50 or older, you can also make a $1,000 annual “catch-up” contribution.

Employer-Sponsored Retirement Plans

Employer-sponsored retirement plans such as 401(k)s and 403(b)s have a $17,500 contribution limit in 2013; individuals aged 50 and older can contribute an extra $5,500 each year as a catch-up contribution.

If you are currently contributing to an IRA or an employer-sponsored retirement plan, it may be wise to check the contribution limit each year in order to put aside as much as possible.

Distributions from traditional IRAs and most employer-sponsored retirement plans are taxed as ordinary income and may be subject to an additional 10% federal income tax penalty if taken prior to reaching age 59½. If you participate in both a traditional IRA and an employer-sponsored plan, your IRA contributions may or may not be tax deductible, depending on your adjusted gross income.


Have retirement or investment questions?

State Bank of Southern Utah provides two in-house professionals for all of your retirement and investment needs.


Jay Decker, ChFC

Financial Consultant

Phone: 435-865-2319
Fax: 435-865-2219
Mobile Phone: 435-868-8701
Cedar City Branch


Kevan B. Matheson, CFP®

Senior Investment Executive

Phone: 435-652-7000
River Road Branch


Topics: State Bank of Southern Utah, Planning, Retirement, Retirement Planning, Retirement Plans, IRA, Investment Executives, Finances

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