The Internal Revenue Service has announced the cost-of-living adjustments applicable to the dollar limitations for qualified retirement plans that will allow employees to increase their retirement savings for 2013. This Alert highlights some of the new limits, comparing them to the limits of the prior five years. The Consumer Price Index for all Urban Consumers is the benchmark used to determine if the limits increase. Many of the 2012 dollar limits will increase because the thresholds to trigger adjustments for 2013 have been met, as highlighted in bold in the chart below:
Click here to see chart.
Employers and sponsors of qualified retirement plans should look to implement the new limits for 2013. We are available to advise you on updating your enrollment materials, summary plan descriptions, employee handbooks and other employee communications.