The Internal Revenue Service creates annual limitations on contributions made to qualified retirement plans like Brethren Pension Plan. Here are the main types of contributions, and the limits for 2012 and 2013 —

Elective-deferral contributions — These are pre-tax contributions an employee makes to an employer-sponsored retirement plan such as a 401(k) or 403(b). (Code § 402(g))

Catch-up contributions — If you are 50 years old or older by the end of the calendar year, you may contribute additional funds to your Pension account beyond the elective-deferral contribution limit. (Code § 414(v))

Defined contribution plan contributions — The total annual contribution, including tax-deferred and tax-paid deposits, from both an employer and an employee. The limit is the lesser of the dollar figure below or 100 percent of your pay. (Code § 415(c))

Annual compensation limit — The maximum dollar amount that can be taken into consideration when calculating retirement benefit contributions. (Code § 401(a)(17))

IRA Limit Changes for 2013

The deduction for taxpayers making contributions to a traditional IRA is phased out for singles and heads of household who are covered by a workplace retirement plan and have modified adjusted gross incomes between $59,000 and $69,000 in 2013, up from $58,000 and $68,000 in 2012. For married couples filing jointly, in which the spouse who makes the IRA contribution is covered by a workplace retirement plan, the income phase-out range is $95,000 to $115,000, up from $92,000 to $112,000. For an IRA contributor who is not covered by a workplace retirement plan and is married to someone who is covered, the deduction is phased out if the couple’s income is between $178,000 and $188,000, up from $173,000 and $183,000.

The AGI phase-out range for taxpayers making contributions to a Roth IRA is $178,000 to $188,000 for married couples filing jointly, up from $173,000 to $183,000 in 2012. For singles and heads of household, the income phase-out range is $112,000 to $127,000, up from $110,000 to $125,000. For a married individual filing a separate return who is covered by a retirement plan at work, the phase-out range remains $0 to $10,000.