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2013 Retirement Planning Rules, Rates, and Limits

All the Rules You Need for 2013 Retirement Planning


Each year some of the retirement planning rules and limits change, as most are indexed to inflation. Below I've gathered the 2013 rules and limits that are most relevant to your retirement planning.

1. 2013 401(k) Contribution Limits

If you're still working, and can participate in a 401k plan, it's likely you'll want to take full advantage of it. 2013 401(k) contribution limits rose slightly from 2012 levels. You may want to adjust your contribution amounts to take advantage of the higher allowable contributions.

2. 2013 Traditional IRA Limits

Did you know you can sometimes contribute to an IRA even if you have a 401(k) plan? In addition, IRA contributions are allowed for non-working spouses. Of course there are rules and limitations that apply. The 2013 rules are covered in this article.

3. 2013 ROTH IRA Limits

I consider the ROTH IRA the superhero of all retirement accounts. You can grow money tax-free with a ROTH and if need be, you can get your original contributions back out without paying the 10% penalty tax, even if you are not yet 59 1/2. Check out the 2013 ROTH contribution limits to see if you can put this superhero to work for you.

4. 2013 HSA Limits

A health savings account can be a smart way to save for retirement. You can contribute money on a tax deductible basis and later use it tax-free. This is pretty amazing. You have to pair it with a high deductible insurance plan, so it won't work for everyone. If you're in charge of your own health insurance, take the time to see if an HSA is right for you.

5. 2013 Social Security Earnings Limit

Many retirees are caught off guard by something called the Social Security earnings limit. If you collect your Social Security retirement benefits early, and then go back to work, if you make too much, you may owe some of your benefits back. Make sure you understand how the earnings limit works before you begin your own Social Security benefits.

6. 2013 Medicare Part B Premiums

Although Medicare Part A is free, Medicare Part B is not. The more income you have, the higher your premium. A year where you show a larger than normal amount of income (due to the sale of a piece of property or a large bonus for example) can catch up with you later resulting in higher Medicare Part B premiums.

7. 2013 Tax Rates

Whether you are already retired, or still saving, understanding 2013 tax rates can help you get more out of the money you have. 2013 tax changes were generally favorable to lower income tax payers and less favorable to higher income filers. Either way, smart tax planning can help you keep more of your retirement money.

8. 2013 Retirement Savers Tax Credit

Lower income households may be eligible for a tax credit if they contribute to a retirement plan. This is like having the IRS make part of the contribution for you. You can find the 2013 Saver's Credit info at the link above.

9. 2013 Plans for Self-Employeds

SEPs, Individual 401(k)s, Defined Benefit plans, and SIMPLE plans are all options for business owners. Some are better for the one-owner shop, while others work better for businesses with employees. You'll find an overview of each plan and the 2013 contribution limits at the link above.
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