2013 IRA Contribution Limit Increases – Historical Chart

The IRS recently announced the Traditional and Roth IRA contribution limits for tax year 2013. The limitations are indexed to inflation, but only in $500 increments (as of 2010) which are triggered when the cost-of-living calculation reaches a certain threshold. The threshold was finally met, so the limit on annual contributions to an Individual Retirement Arrangement (IRA) increases to $5,500, up from $5,000. However, the additional catch-up contribution allowed for those age 50 and higher remains $1,000.

The limits are the same for both Roth and Traditional IRAs, but each one has their own unique set of eligibility requirements. IRAs are “individual” accounts by definition, so the limits are per person. The deadline for 2012 tax year contributions is the same as the 2012 tax return filing deadline: Monday, April 15, 2013. Tax return extensions won’t apply to this cutoff.

Since I like visual aides, here’s a historical chart and table of recent contribution limits. I’m proud to say that we’ve both done the max since 2004. Have you been taking advantage of your potential IRA tax break?

Year IRA Contribution Limit Additional Catch-Up Allowed (Age 50+)
2007 $4,000 $1,000
2008 $5,000 $1,000
2009 $5,000 $1,000
2010 $5,000 $1,000
2011 $5,000 $1,000
2012 $5,000 $1,000
2013 $5,500 $1,000

Sources: IRS.gov, IRS.gov COLA Table [PDF]


  1. Let’s see:

    Flex fund tax break for medical cut in half from 5K to 2.5K.
    Medical fees no longer paid with pre-tax dollars
    “Temporary” tax savings for college, dependents, capital gains, AMT all going away.

    Oh yeah, I have the extra money for this. No problem. Oh wait, I heard Obama just found out about it and said this only benefits the rich so these limits will not be raised after all.

    Welcome to 2012 post-election when Americans will finally realize what idiots they were..

  2. I read about this a few weeks ago and am happy that the limit was raised for IRAs. It would be nice if the limit were as high as a 401k though, and I often wonder what people do if they don’t have a 401k and only have an IRA. I guess they have to go the brokerage route.

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