Maximum 401k Contribution for 2013


Good news, the IRS has raised the 401K plan limits for 2013.

The 2013 maximum 401K Contribution

So the 2013 maximum 401K contribution is  now $17,500. This allows you to invest more into your 401K than in previous years. The new contribution limit also applies to the Roth 401K’s, 457 B plans, and 403 B plans.
Although the max 401K contribution amount has never declined year after year, it has had increases all but six years going back through 1987. The 2011 401K limit was $16,000 and was stuck at that number for several years before. While 2012 401K limit did see an increase to $17,000.

2013 401k Catch Up Contribution

If you are 50 or older, the 401K catch-up contribution limit will stay the same at $5,500 for 2013, no increase this year. So that would be a total contribution limit of $23,000 if you are 50 or older. The same holds true for Roth 401K’s, 457 B plans, and 403 B plans.

2013 401k contribution

Maximize 401K Contributions for 2013 

Having a traditional 401K retirement account is very important for all individuals. A 401K plan allows you to save for your retirement by investing your money in various stocks, mutual funds, bonds, and a variety of other financial instruments. A 401K also allows you to lower their tax burden significantly.

Does your employer have a 401K contribution match? If so make sure you are taking full advantage of it, if you are not you are leaving money on the table that could be going towards your retirement. This also allows you to save some money since your employer will put a percentage into your 401K account. Although, not everybody has the financial ability to contribute fully to their 401K, you should still try your best to budgeting some money toward it.

If you are trying to max out your 401K contribution for 2013 you will need to do a little math now to make sure you hit the $17,500 contribution limit by the end of the year. Just work with your employer to make sure that the correct amount is coming out of your paycheck each pay period and going into your 401K account.

Maxed out 401K Contributions, What Next?

If your up for it, you can also create a Roth 401K or a traditional 401K with a brokerage firm, such as TradeKing be sure to check out my review of TradeKing. Also if you have an old 401K sitting around from a prior employer it might be a good time to rollover 401K into an IRA or something else.

Overall, important that everyone who can open and start making the maximum 401K contribution, either with your employer or by yourselves. This financial instrument can help you plan your retirement ahead of the rest while at the same time saving you money on taxes.


So where are you investing your money for retirement?

Author: KC Beavers

KC Beavers is a semi-retired entrepreneur. The subject of personal finance has always fascinated him. In an effort to not bore those around him with all his love of personal finance as much he has come here to bore all of you instead.

Bradley Brown
Bradley Brown

The most underfunded investment is……… make a guess……. you guessed it right… it is retirement saving. While it might not be always possible to max out your 401k contribution, my financial advisor suggests rolling 401k into gold IRA. This way I can put aside some of my savings in gold and silver bullion. The value of precious metals rises over the long term which enhances my portfolio, irrespective of whether I’m able to consistently max out my contribution.


Good update on the current limits on the 401K.  Not many are aware on the limit increase.  I'd say, exhaust your other tax-advantaged retirement options before maximizing your 401K.  Most 401Ks in simple words are expensive. Contribute upto your employer's match, max out IRAs and *then* put the remaining in your 401K.

Laurie TheFrugalFarmer
Laurie TheFrugalFarmer

We're in the same boat with Jake.  Working to increase income so we can max out the contributions.  Thanks for the educational info here, KC!


I've never maxed out a retirement account, but I can see how valuable the increase is. It can bring down your taxes and, of course, help you save for the future. One day my goal is to max out my contribution.


I like that the maximum has risen, but it doesn't really affect me at this point.  My wife and I barely contribute enough to add up to one person's maximum.  It'll help in the future when we have some more money though.