Bible Money Matters

Christian personal finance

Menu
    • About
    • Archives
    • Contact
    • Close
  • Making Money
      • Popular Articles

        • 50 Ways To Make Money: Maximizing, Creating And Increasing Your Income
        • 10 Weird And Unconventional Ways To Make Money
        • Making Money With A Blog (e-Book)
        • 10 Places To Sell Or Trade Your Unused (Or Broken) Electronics
        • Ways To Make Extra Money Series: 20 More Income Generating Ideas From Our Readers
        • Making Side Income Can Help Blunt The Impact Of Becoming A One Income Family
        • Earn Cash Back With Discover it® Credit Card
      • Recent Articles – Making Money

        • Best Sites Like Fiverr To Make Money As A Freelancer
        • 13 Of The Best Independent Contractor Jobs
        • 25 Of The Best Gig Economy Jobs
        • How To Make Money Blogging: Turn A Blog Into A Business
      • Categories

        • Making Money
        • Investing
        • Retirement
        • Jobs & Work LIfe
        • Money
        • Income
    • Close
  • Saving Money
      • Popular Articles

        • 50 Easy Ways To Save Money Every Month
        • 10 Weird And Unconventional Ways To Save Money
        • 10 Practical Ways To Save Money And Increase Your Net Worth
        • How To Save Money On Just About All Of Your Regular Monthly Bills
        • Ways To Watch TV Without Paying An Arm And A Leg For Cable TV
        • Save Money On Your Hospital Bill - Just By Asking
      • Recent Articles – Saving Money

        • Living Stingy: 13 Tips For Spending Less
        • How To Save $100k In 7 Practical Steps
        • Stairs App Review: Save And Invest To Earn 4-6% Interest
        • Honey Review: Save Money Automatically When You Shop Online
      • Categories

        • Saving Money
        • Frugality
        • Planning
        • Finance
        • Saving For Retirement
        • Savings Accounts
    • Close
  • Banking
      • Best Rates For 2019

        • Best Credit Cards
        • Best Savings Accounts
        • Best Mortgage Rates
        • Best CD Rates
        • Best Brokerages
        • Free Credit Scores
      • Recent Reviews

        • M1 Finance Review: Free Trading App And Automated Investing
        • Tablo 4th Gen Over-The-Air DVR Review: The Best Device For Cord Cutters
        • TradeStation Review: Commission Free Stock And ETF Trades
        • Firstrade Review: Commission Free Trades on Stocks, Crypto, And Options
      • Categories

        • Bank & Software Reviews
        • Investing
        • Credit
        • Banking
        • Mortgage
        • Insurance
        • Family Budget
    • Close
  • Recommended
  • Video
    • Close

401k Contribution Limits And Rules For 2013

By Peter Anderson 3 Comments - The content of this website often contains affiliate links and I may be compensated if you buy through those links (at no cost to you!). Learn more about how we make money. Last edited October 19, 2012.

Share
Pin3
Tweet
Share4
7 Shares

In the past few years I haven’t really contributed to my company’s 401(k) plan because my company doesn’t really do any matching contributions.  Because of that, and the fact that the company’s plan wasn’t a very good one (high costs, etc), I avoided it altogether.  This past year the company switched plans to a new company, and their investing options were a lot better.  Last year I was able to max out my  Roth IRA contributions in our account at Betterment.com, and then decided to try and max out my Roth 401(k) and 401(k) contributions for the year.

This year’s combined max contribution to the 401k of both types is $17,000, and I thought I’d be able to max it out. In the intervening months, however, we decided we wanted to move, and at that time we stopped our retirement contributions for a short while to stockpile cash for a down payment.

Even though we won’t be maxing out our contributions this year, I thought it might be a good idea to do a quick review of what the 401k contribution limits, rules and regulations will be for 2013.

While the IRS hasn’t released guidance yet as to what the new limits will be, plenty of folks have extrapolated what they believe the limits will be for next year. If they turn out to be wrong, we’ll come back and update this post at that time, which should be later this month.

UPDATE: The IRS released their 401k contribution guidelines today, and the max contribution did in fact increase to $17,500.

The elective deferral (contribution) limit for employees who participate in 401(k), 403(b), most 457 plans, and the federal government’s Thrift Savings Plan is increased from $17,000 to $17,500.

Looking for the 2013 Roth IRA Changes? Click here.

Quick Navigation

  • 401(k) Background
  • 401(k) Contribution Limits
  • Contribution Limits For 401(k) – Your Employer
  • 401(k) Catch-Up Contribution Limits For Those 50+
  • If Your Employer Contributes, Does That Affect Your Limit?
  • Final Things To Look At

401(k) Background

First things first.  What is a 401(k) account, where did it originate? From Wikipedia:

A 401(k) is a type of retirement savings account in the United States, which takes its name from subsection 401(k) of the Internal Revenue Code. 401(k)s were first widely adopted as retirement plans for American workers, beginning in the 1980s. The 401(k) emerged as an alternative to the traditional retirement pension, which was paid by employers. Employer contributions with the 401(k) can vary, but in general the 401(k) had the effect of shifting the burden for retirement savings to workers themselves. In 2011, about 60% of American households nearing retirement age have 401(k)-type accounts.

401k contribution limit 2013

401(k) Contribution Limits

When you contribute to a 401(k) it will have contribution limits beyond which you can’t contribute for that year. The 401k contribution limits will increase this year due to an increase in the consumer price index. The following table will show the maximum yearly contribution for the 401k account type every year since 2007.

Year401k Contribution Limit
2007$15,500
2008$15,500
2009$16,500
2010$16,500
2011$16,500
2012$17,000
2013$17,500
2014$17,500
2015$18,000
2016$18,000
2017$18,000
2018$18,500
2019$19,000
2020$19,500
2021$19,500
2022$20,500
2023$22,500
2024$23,000

For the past 7 years have seen an increase of $2000 in the 401(k) contribution limits.

Contribution Limits For 401(k) – Your Employer

An employer can contribute to an employee’s 401(k) plan as well, and if yours is offering to do that, take it!  Your employer will often contribute a percentage match, for example, contributing 50% of your contribution, up to the first 6% of your salary.

Certain employers will also cap how much you can contribute to the company’s 401k plan.  If you are a highly compensated employee (HCE), making above $115,000 in 2012, you might be subject to additional limits in your company’s 401(k).  The rules get a bit complicated, and the rules are essentially there in order to encourage more 401(k) plan participation by less highly paid employees, but because of them often a company will not allow HCE to contribute more than a certain percentage of their income.

All this is to say, check with your company’s 401(k) plan administrator for your own plan’s limits, which may be different from the government limits.

401(k) Catch-Up Contribution Limits For Those 50+

If you are at or over the age of 50 by the end of the 2013 tax year, and your plan allows it, you can make a catch up contribution to your 401(k) plan.

Year401k Catch-Up Contribution Limit
2007$5000
2008$5000
2009$5500
2010$5500
2011$5500
2012$5500
2013$5500
2014$5500
2015$6000
2016$6000
2017$6000
2018$6000
2019$6000
2020$6500
2021$6500
2022$6500
2023$7500
2024$7500

There is no increase this year of catch up contribution limits, so it will remain at $5500.

If Your Employer Contributes, Does That Affect Your Limit?

One source of some confusion for people is whether their employer’s contributions to their 401(k) will affect their own contribution limits. In other words, will their limit of $17,500 be affected by their employer’s contribution to their account.   In short, it won’t affect the employee’s limit.  The limits for employer and employee contributions are separate, and don’t affect each other.  That’s good news because it means you can contribute more if your employer is making contributions for you!

Example: If someone makes $100,000 in pre-tax compensation,  and their employer will contribute 50% of the first 6% , they could have $17,500 contributed by the employee, and $3,000 by the employer for a total of $20,500. If they’re over 50 they could also make catch up contributions for a total of $26,000.

Final Things To Look At

A couple more things to consider when looking at 401(k) plans for 2013.  First, the maximum contribution to a 401(k) plan when taking into account employee contributions, employer matching and other contributions is $50,000 or 100% of their compensation, whichever is less.  Hopefully I’ll be in a position some day to be putting in and receiving that kind of a contribution!

Do you contribute to a 401(k)?  Do you expect to reach the max contribution next year?

Related Posts

  • 401k Contribution Limits And Rules For 2011

    We are contributing to a 401k in addition to our Roth IRA. Here are the contribution limits for 2011 for others who will also use…

  • 401k Contribution Limits And Rules For 2015

    As they do every October, the IRS released their 401k contribution guidelines this week for the 2015 tax year. How much can you contribute in…

  • 401k Contribution Limits And Rules For 2014

    Trying to figure out how much you can contribute to your 401k in 2014? Here is a quick review of the 401k contribution limits, rules…

Share
Pin3
Tweet
Share4
7 Shares
Last Edited: 19th October 2012 The content of biblemoneymatters.com is for general information purposes only and does not constitute professional advice. Visitors to biblemoneymatters.com should not act upon the content or information without first seeking appropriate professional advice. In accordance with the latest FTC guidelines, we declare that we have a financial relationship with every company mentioned on this site.

This article is about: Investing, Retirement

About Peter Anderson

Peter Anderson is a Christian, husband to his beautiful wife Maria, and father to his 2 children. He loves reading and writing about personal finance, and also enjoys a good board game every now and again. You can find out more about him on the about page. Don't forget to say hi on Pinterest, Twitter or Facebook!

Comments

    Share Your Thoughts: Cancel reply

  1. Roger @ The Chicago Financial Planner says

    Nice post Peter, great information for your readers. 401(k) plans often get a bad rap via the news media, some of this well-deserved. However I’ve seen many folks accumulate enviable retirement nest eggs via their 401(k) plans. Your article does a great job of making these plans a bit less complicated for folks who may be considering whether or not to contribute.

    Reply
  2. Nicholas says

    How does one find the balance between saving an adequate amount to retire, and not ‘storing up treasures on earth, where moth and rust decay’?

    Reply
    • Peter Anderson says

      That’s the question I suppose, how to make sure you’re always seeking God and His will in your planning decisions, and the heart behind why you’re saving up for the future. Another question I suppose is if you ever actually will retire. For me, I want to plan ahead and save for the future so that I can provide for my family, and also so that I’ll have more to give and more time to give back to others when I’m older, not necessarily so that I can sit around and be lazy. :)

      Proverbs 21:26 All day long he craves for more, but the righteous give without sparing.

      Reply
Previous Post: How To Get Sponsorship To Go To A Blog Conference
Next Post: How To Get Free Unlimited Voice And Data Cell Phone Service Or Free 4G Wireless Internet
Discover Investment Platforms

Popular Posts

  • 21 Easy Ways To Earn Free Amazon Gift Cards
  • 10 Best Free Tax Filing Services And Software Online
  • 21 Apps That Pay You Real Money Fast
  • 17 TV Apps And Live TV Streaming Services To Watch TV Free
  • 30 Legit Online Jobs That Pay Well
  • 37 Easy Ways To Get Free Gift Cards
  • How To Get Free Stock
  • 40 Easy Ways To Get Free Money Fast
  • 21 Places To Read Free Books Online
  • 24 Legit Online Jobs
  • 17 Best Work From Home Jobs: A List Of Legit Online Jobs That Pay Well

Recent Posts

  • A Eulogy And A Remembrance Of My Dad, Mark Lloyd Anderson
  • Why Do We Celebrate Our Independence On The Fourth Of July?
  • Enjoy Your Memorial Day But Let’s Remember Those Who Gave The Ultimate Sacrifice
  • 25 Bible Verses For A Happy New Year!
  • Merry Christmas To One And All: The Original Christmas Story
  • 401k Contribution Limits And Rules
  • Traditional And Roth IRA Contribution Limits Announced
  • M1 Finance Review: Free Trading App And Automated Investing
  • Tablo 4th Gen Over-The-Air DVR Review: The Best Device For Cord Cutters
  • Living Stingy: 13 Tips For Spending Less

Disclaimer

The information contained in BibleMoneyMatters.com is for general information or entertainment purposes only and does not constitute professional financial advice. Please contact an independent financial professional for advice regarding your specific situation.

In accordance with FTC guidelines, we state that we have a financial relationship with some of the companies mentioned in this website. This may include receiving access to free products and services for product and service reviews and giveaways.

Any references to third party products, rates, or websites are subject to change without notice. We do our best to maintain current information, but due to the rapidly changing environment, some information may have changed since it was published. Please do the appropriate research before participating in any third party offers.

Amazon and the Amazon logo are trademarks of Amazon.com, Inc. or its affiliates.

We respect your privacy: Privacy Policy.

Thanks for visiting!

Bible Money Matters - Seen On These Sites and more..
Bible Money Matters is a personal finance, entrepreneurship and investing community. Give more, save more and live more.

Copyright © 2025 · Bible Money Matters | Sitemap | Advertise | Privacy Policy