If you're new to "Think Your Way To Wealth", get free updates on debt reduction, saving money, and building wealth by subscribing to the RSS feed or via Email . Thanks for visiting!

Several weeks ago, the IRS released pension plan limits for 2013, which sets the limits one can contribute to a 401(k), 403(b), and other retirement savings plans, as well as individual retirement account (IRA) limitations for traditional and Roth IRAs.

2013 401k limits

The maximum contribution limit for a 401k, 403(b), 457(b), or Government Thrift Savings Plan is increasing by $500 to $17,500. If you are 50 years old or older, you can contribute an additional $5,500 in 2013.

Traditional and Roth IRA s

With a traditional IRA contributions are tax deductible and the withdrawals made from a traditional IRA during retirement are taxable. For a Roth IRA contributions are made with after tax money, and the proceeds can be withdrawn tax free after reaching age 59 1/2. Due to the ever present talk of tax rates increasing in the future, many people find the Roth IRA more attractive, particularly if they are already contributing to a tax-deferred plan such as a 401k or a 403b.

2011 Traditional and Roth IRA limits

The maximum contribution limit for a Traditional IRA or a Roth IRA is also changing for 2013,  increasing $500 to  $5,500. The  IRA contribution limits are increased in increments of $500 based on inflation, so if inflation has not increased enough, there would be no change in the contribution limit. If you are 50 years old or older, you can contribute an additional $1,000 in 2013, for a total of $6,500. Note that you can contribute to both a Traditional IRA or a Roth IRA in the same year, but the total for both cannot exceed the $5,500 maximum contribution limit ($6,500 for 50 yrs old and older).

Income Phase outs based on Adjusted Gross Income (AGI) for 2013 Traditional and Roth IRAs

  • The deduction for taxpayers making contributions to a traditional IRA is phased out for singles and heads of household who are active participants in  an employer-sponsored retirement plan and have modified adjusted gross incomes (AGI) between $59,000 and $69,000, up from $58,000 to $68,000 in 2012. For married couples filing jointly, in which the spouse who makes the IRA contribution is an active participant in an employer-sponsored retirement plan, the income phase-out range is $95,000 to $115,000, up $3000 from 2012. For an IRA contributor who is not an active participant in an employer-sponsored retirement plan and is married to someone who is an active participant, the deduction is phased out if the couple’s income is between $178,000 and $188,000, up $5,000 from 2012.
  • 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 $5000 from 2012. For singles and heads of household, the income phase-out range is $112,000 to $127,000, up $2,000 from 2012.


I Bond Rate for May 2012 through October 2012- 2.20 %

May 15, 2012

May  2012- I Bond Earnings Rate 2.20 %, Fixed Rate 0.0 % I bond rates were lowered again for the 6 month period of May 2012 to November 2012, which is reflected in the 6 month offering period for I bonds, with a semi-annual inflation rate of 1.10%, and an overall return of 2.20% for [...]

Read the full article →

ING DIRECT Black Friday Sale 2011- $107 Bonus plus More!

November 25, 2011

As usual, ING DIRECT has some great deals for Black Friday with free money offers for you! Here are the details on the three great deals: $107 Electric Orange account opening bonus Open Electric Orange November 25th – 27th and make a total of 5 purchases (either signature or PIN-based) using your Electric Orange Card [...]

Read the full article →

Obama Proposes Changes to Home Affordable Refinance Program (HARP)- Will It Help?

October 25, 2011

The federal government announced changes to the Home Affordable Refinance Program (HARP) on Monday, hoping to allow more homeowners who are underwater on their mortgages to qualify for the program, and by re-financing and potentially reducing their monthly payments, making it easier for them to make their payments and assisting with possible cash flow problems. [...]

Read the full article →

Groupon $20 for $40 at the Body Shop

October 24, 2011

Groupon, the local and national deal site, is having another $20 for $40 at the Body Shop physical store locations. They ran this deal back in April, and it was great for Mother’s Day, so grab it again to get a head start and save 50% on some of your Christmas shopping-now is a great time to start. [...]

Read the full article →

Will Closing Your Checking Account and Switching Banks Hurt Your Credit Score?

October 18, 2011

With new debit card fees being implemented or proposed by several large banks in the last few weeks, many people have decided they have “had enough”, and are looking for alternatives with less fees, such as credit unions or online checking accounts like ING DIRECT Electric Orange℠ checking or Ally Bank’s Ally Interest Checking Account, [...]

Read the full article →
Page 1 of 6212345678910203040...Last »

Money Hackers Network Think Your Way to Wealth - Blogged Directory of Finance BlogsBlog Directorypfblogs.org logo Personal  Blogs - Blog Catalog Blog DirectoryA World of Personal Finance Bloggers Join My Community at MyBloglog!