As you know, Jennifer has flown the coop. She was swept off her feet, proposed to, and whisked away by a Navy man to a new life. We are a nice place to work, but how do you compete with that? We need a replacement. Dave’s wife Bonnie helped us during our transition and showed that she is energetic and works well under pressure. She is highly intelligent and experienced in event planning and office administration. We get along with her well, and we think you will find her to be most helpful, responsible and friendly. Now that Dave and Bonnie’s kids are all of school age, Bonnie can come to work while they are at school and be home for them when school is out. Bonnie started with us on a part time basis beginning a few weeks ago. Please give her a warm welcome when you see her! Rising Contribution Limits Increases to the Consumer Price Index (CPI) in 2012 result in increases for many government set limits indexed to inflation. What does this mean for you in 2013?
- Social Security benefits will be increased by 1.7%.
- 401(k), 403(b), and 457 contribution limits will increase from $17,000 to $17,500. Above age 50 has a $5,500 catch up for $23,000 total.
- SIMPLE plan limits increase from $11,500 to $12,000 ($14,500 total with $2,500 50+ catch up).
- Traditional and ROTH IRA limits increase from $5,000 to $5,500 ($6,500 total with $1,000 50+ catch up).
- Qualified defined contribution plan additions from the same employer rise from $50,000 to $51,000.
- Maximum wages subject to social security tax increases from $110,100 to $113,700.
For those of you currently maxing out your tax deferred plans it is important to adjust 2013 contributions to take full advantage of these increased contribution limits. Read the full newsletter.
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