Mid Year Contribution Check

Earlier this year, I discussed contributions to your retirement plan.  Are you working more than one job and able to contribute to multiple plans?  Have you switched employers this year and able to make contributions to more than one plan?  The IRS holds you responsible for ensuring you do not put too much in as employee contributions during a calendar year.  If you exceed the limit, you are responsible for taxes.  The IRS issued an industry newsletter pointing out a resource on their web site that would be of better use to many participants.  The article is located on their website at http://www.irs.gov/Retirement-Plans/How-Much-Salary-Can-You-Defer-if-You’re-Eligible-for-More-than-One-Retirement-Plan%3F.  If you have already exceeded the limit, I recommend going to your current employer's plan contact and have them help you with the return and correction process.

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Your 2013 Contribution for Retirement

Happy new year!  Have you adjusted your retirement plan contributions yet? The Internal Revenue Service (IRS) has a list of the new limits on their website located at http://www.irs.gov/uac/2013-Pension-Plan-Limitations. Do you have an IRA? In general, you can up your contributions to $5,500. Do you have a 401(k) or 403(b) plan? Likewise, you can up your contributions to $17,500. Older employees may be able to contribute more. However, your plan may have additional limits that might restrict you to a lower number so be sure to check with your benefits department.

Thanks for reading and have a wonderful day! Please be sure to subscribe to my blog and follow me on twitter @ChristineGurney.