Selected 2013 Inflation-Indexed Figures

Many contribution and deduction amounts in the tax law are indexed for inflation.  Many also have statutory adjustments.  While there remains substantial uncertainty about whether the “lame duck” Congress will enact any new tax laws before the end of 2012, some important 2013 inflation-adjusted figures have been released and are as follows:

·       The contribution amount for traditional and Roth IRAs is $5,500 (up from $5,000 in 2012).  For those who are age 50 and older in 2013, the additional “catch-up” contribution remains $1,000.

·       The modified adjusted gross income phase-out range for contributions to Roth IRAs is from $178,000 to $188,000 for joint filers (up from between $173,000 and $183,000 in 2012); and from $112,000 to $127,000 for single filers (up from $110,000 and $125,000 in 2012).

·       The contribution amount for traditional and Roth 401(k) accounts is $17,500 (up from $17,000 in 2012).  For those who are age 50 and older in 2013, the additional “catch-up” contribution remains $5,500.

·       The limit on the annual additions to a participant's defined contribution account is $51,000 (up from $50,000 in 2012).

·       The annual exclusion from gift tax is $14,000 per donee (up from $13,000 in 2012).

·       The personal exemption is $3,900 (up from $3,800 in 2012).

·       The Social Security tax wage base is $113,700 (up from $110,100 in 2012).

·       The maximum annual contribution to a health savings account is $3,250 (up from $3,100 in 2012) for an individual-coverage-only health plan, and $6,450 (up from $6,250 in 2012) for a family-coverage health plan.  For employees age 55 and older in 2013, the additional HSA "catch-up" contribution remains $1,000.