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I just logged into our Vanguard accounts to make our first contributions for 2013. I did mine first. As expected, it showed that my limit for 2013 is $5,500. I made my transaction, logged out, then logged into my wife's account. I was surprised to see that it said her limit for 2013 was $6,500. At first, I thought that was a mistake. I know that when you are 50 or older, you can contribute an extra $1,000/year, but she's only 49. Then it occurred to me. She will turn 50 in 2013 (how the heck did that happen? 
). So does she get the benefit of that extra $1,000 contribution even though she won't turn 50 until mid-December? Makes sense, since when you have a baby in December, you get the deduction for the full year. I just had never thought about it. I guess I need to scrape up an extra $1,000 on top of the extra $1,000 I already had to come up with due to the regular limit going up $500 each. Not a bad problem to have to solve of course.
). So does she get the benefit of that extra $1,000 contribution even though she won't turn 50 until mid-December? Makes sense, since when you have a baby in December, you get the deduction for the full year. I just had never thought about it. I guess I need to scrape up an extra $1,000 on top of the extra $1,000 I already had to come up with due to the regular limit going up $500 each. Not a bad problem to have to solve of course.
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