We are happy to share with you the new retirement plan limits established by the IRS for 2013. The Internal Revenue Service has announced cost of living adjustments affecting dollar limitations for pension plans and other retirement-related items for 2013. In general, many of the pension plan limitations will change for 2013 because the increase in the cost-of-living index met the statutory thresholds that trigger their adjustment. However, please note that other limitations will remain unchanged. For more information about retirement plan limits, please contact me at dan@i2ibenefits.com, or visit www.irs.gov.

Plan Limits for Plan Year 2013 2012
401(k), 403(b), 457 Elective Deferral Limit $17,500 $17,000
Catch-Up Contribution Limit $5,500 $5,500
Annual Compensation Limit $255,000 $250,000
Defined Contribution Limit $51,000 $50,000
Defined Benefit Limit $205,000 $200,000
Key Employee $165,000 $165,000
Definition of Highly Compensated Employee $115,000 $115,000
Social Security Wage Base $113,700 $110,100

Sample Participant Notification

Dear Employees,

Our plan gives you a great opportunity to make savings a part of your overall budget and to pay first the most important person you know ... you!

 Effective January 1, 2013, the maximum amount you can contribute to your 401(k) plan is $17,500.

 If you will be age 50 or older at anytime in 2013, you may choose to contribute an additional $5,500 for a maximum contribution of $23,000.

 Don't Miss Out!

We encourage you to contribute the maximum amount to the 401(k) plan. Should you wish to increase your contributions, simply log into your 401k online and request a deferral or contribution rate change or complete the appropriate paperwork through the Human Resources Department. You are allowed to increase your 401(k) contribution periodically, and are allowed to make the change effective for January 1, 2013.

 If you have any questions or need assistance, please contact i2i benefits at dan@i2ibenefits.com.