The 401(k) annual investment limit will increase to $17,500 next year

The 401(k) annual investment limit will increase to $17,500 next year (Alberta Times) The federal Internal Revenue Service (IRS) announced last Thursday that on 20…

(Alberta Times)

The federal Internal Revenue Service (IRS) announced last Thursday that the investment deposit limit for corporate employee tax-free retirement plans (401(k)) will increase by US$500 to US$17,500 in 2013. Due to inflation, this is the second consecutive year that the IRS has increased the 401(k) investment limit, after increasing it by $500 last year. But the cap on "catch-up contributions" for workers 50 or older has not increased and remains at $5,500. In other words, the total amount that these people (employees aged 50 or above) can deposit into their 401(k) next year will not exceed US$23,000 (175,00+5,500).