Thursday, October 31, 2013

New 401(k) Contribution Limits

The new 401(k) caps are out. (They're late due to a recent government shutdown). They are as follows:

1) The elective deferral (contribution) limit for employees who participate in 401(k) and 403(b) remains unchanged at $17,500.

2) The catch-up contribution limit for those aged 50 and over remains unchanged at $5,500.

3) The overall annual defined contribution limit has increased from $51,000 to $52,000.

4) The annual compensation limit has increased from $255,000 to $260,000 ...

For most 401(k) participants, the important numbers above arer 1) and 2). For a chosen few, 4) could be important, because once they hit the income cap of $260,000, no further 401(k) contributions can be made.

One more thing: For any TAG 401(k) participants reading this, the enrollment deadline for November happens tomorrow. If you have interest in getting into the Plan for the last two months of the year, please get your application forms into the Animation Guild office no later than tomorrow.
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