IRA contributions, income limits change

In 2013, individuals will be able to save a bit more through an individual retirement account, according to new IRS limits.

Since 2008, the IRS had capped contributions to traditional and Roth IRAs collectively at $5,000, but for 2013, the limit has increased slightly to $5,500.

The IRS has also updated the income limits for being eligible to deduct contributions to a traditional IRA and for being eligible to contribute to a Roth IRA. To find out more, go to www.irs.gov.

The IRS has not changed the catch-up contribution limit of an additional $1,000 for persons older than 50.

Mid American offers both traditional and Roth IRAs, as well as a Simplified Employee Pension IRA. The SEP IRA is a low-cost option, with no start-up or administrative costs, to a traditional pension plan and contributions are tax deductible. Employers and self-employed individuals can set up this type of IRA.

If you are interested in an IRA account, contact a financial services representative, 316-722-3921, ext. 202. For legal and tax information, please consult a legal or professional tax adviser.