The
dollar limitation under Section 416(i)(1)(A)(i) concerning the definition of
key employee in a top-heavy plan remains unchanged at $165,000.
- The deduction for taxpayers
making contributions to a traditional individual retirement account (IRA)
is phased out for singles and heads of household who are covered by a
workplace retirement plan and have modified adjusted gross incomes (AGI)
between $59,000 and $69,000, up from $58,000 and $68,000 in 2012. For
married couples filing jointly, in which the spouse who makes the IRA
contribution is covered by a workplace retirement plan, the income
phase-out range is $95,000 to $115,000, up from $92,000 to $112,000. For
an IRA contributor who is not covered by a workplace retirement plan and
is married to someone who is covered, the deduction is phased out if the
couple’s income is between $178,000 and $188,000, up from $173,000 and
$183,000.
- 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 from $173,000 to $183,000 in 2012. For
singles and heads of household, the income phase-out range is $112,000 to
$127,000, up from $110,000 to $125,000. For a married individual filing a
separate return who is covered by a retirement plan at work, the phase-out
range remains $0 to $10,000.
- The AGI limit for the saver’s
credit (also known as the retirement savings contribution credit) for low-
and moderate-income workers is $59,000 for married couples filing jointly,
up from $57,500 in 2012; $44,250 for heads of household, up from $43,125;
and $29,500 for married individuals filing separately and for singles, up
from $28,750.
- The dollar amount under Section
409(o)(1)(C)(ii) for determining the maximum account balance in an
employee stock ownership plan subject to a five-year distribution period
is increased from $1,015,000 to $1,035,000, while the dollar amount used
to determine the lengthening of the five-year distribution period is
increased from $200,000 to $205,000.